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Statement of ILsident Couuiesioner
A. Fernds-~eern, to the Cormittee
on Interior and Insular rlffairs,
on H.U. 9234.
Deceuber 6, 1959.
Air. Chairman:
I deeply appreciate this opportunity to discuss 1I.u. V234 which
I introduced on September the 12th, 1969 to subrtitute fpr U.U. 5026 which
in response to the adoption of Joiat it&eolufion No. 2 by the Legislative
Amembly of the' Co~l~~wyealotfh Puerto itico, I had introduced on llarch 23,
1959. The purpose of that Sesolution aad therefore of H.2. 0234 i a to
perfect and develop the fundamental concept which was adopted both by tbe -
Conpees and the people of Puerto Bico concerning the political atatus of
the people of Puerto Lice under Public Law 600, enacted by the 81st Congean
and accepted by the people of Puerto itico.
A little history may help na better underatand the background of
Public Law 600 and of its fundauental concepts; therefore the reasone for
H.11. 9234 which is intended to clarify and develop that conceiat.
As a result of the Spanish rtaeyican i?ar, it war provided in the
Treaty of Parie of 1899, that sovereignty over the ialand of Puerto IZico
and certain other islands adjacent thereto, were oeded by the Crown of
Spain to the United States. I\s it was later decided by the Suprene Court
of the United States, this cession of eovereignty did not entail the
incorporation of Puerto Rico into the United States; that Puerto Gico was
appurtenant to, but not a part of the lhidsd States. Thus, a new political
category of nunincorporated territoryn came into being in the United Statee
political syetem. Under the treaty it devolved upon the Congress to
determine what the political atatus of the pople of Puerto Rico would be.
Fuerto Itico, as pwt of the Spanish monarchy, was referred to in
the Spanish Constitution as an overseas proviuce, to be governed under
special laws. At the time of the cersion aud under the term of a lbyal
Decree of IJovember 25, 1897, Puerto 3ico wae organized as a eelf governing
comaunity with a parliamentary syetem of government of its own. This status
was comparable to that of the Brifioh dopinions in flroee days, albeit in
the case of ,?uerto Elico repreeeotation in the Spanish Parliament, which it
had enjoyed since .1069~wae nsfafained rince the Slpanieh 2arliaaent would
legislate for ?uerto iiico on certain wattere of a national charactor. A l l
other matters were eubject to the authority of the W r t o :tican Parliament.
With the separation of ~Xe r f ofl ico fron tlie reef of the Spanieh
Uonarchy and with the military occupation of ?uerto Itico by the United
States froopa, the cabinef form of government wae continued for a diort
per*iod of time; then it underwent mdif icationsl .nd finally was abolished)
by successive milit- orders.
In 1900 the Coryresa adopted an Organic lict for Puerto PGico and
military goverment ceseed. It is a nofter of Matory that the Pqerto iscan
people ae a whole were very much disillusioned with the Organic Act of 1900.
Also t h a t a f t e r eeventeen yeare of agitatiou, a rovioed Organic act was
adopted by the Congress. The new Orgazic Act allowed for greater participation
of the people in their own governuent; at the ewe tine the citizen8 of
Puerto leico were declared to be citisene of the United States.
Two scbools of thought had developed mantine in h e r t o :tico. One,
pointing to the fact that all territories of the United State8 traditiorially
had ultinately becorje nsuber states of the Union, held to the doctrine that
Puerto Ilioo should ultinately becoue a aeuber atate of the Union. The other,
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pointing to the fact that Puerto Itico was not a rerrqtory in the sane sense
than f o m r Territories of the United States for wader the treaty it had
nat been incorporated into the United State0 and that a l l other fortner
Spanish colonies in the New Ylorld upon their reparaticrn frw Spain, had
become independent nationrs, held that Puerto Rice u l f h f a l y should become
a republic aa such former colonfeu had become.
The Organic Act of 1900 had not -rely crsated a rfruchwe of civil
government for the people of Puerto l%ico. It had orest4 a framework of
economic relations between the United Statee and Puerfo Uco, which profoundly
affected e e r t o Eklcola economic &if e, h e r t o Rico 'e eoonw which had always
been nosf ly agricultural, had asntinued ao to be, and had nopp becone dependent
mainly on sugar cane, Cane mugar ntiaufrotured in herti0 Uao now entered
the United States free of tariff bsrrierr. The brganio Act of 1900 bad
prodded Ohat the same rates of fariff applied on f a r e i p goods in the
United States were to be applied in Puerto a o o and dhat there would be no
c u s t o~sd uties imposed ou plerahsadise shfpped fron the United Statea t o
Fuerto ilico or fron P.u.. erto 1Uco t o the United States.
The Island's area is only 3,600 riqwe d l e a of land surrounded by
the sea. Land does not increaea, but the paplation of h e r t o Itico rapidly
increased. Therefore, after the f i r a t surge in agricultural activities had
spent itself, and atagar had reached a certain level of expaneion, the
opportunities of employment did not increaee at fha same rafe of population
increase. t'iith the labor force increasing inexotably, the result was ever
growing unemployment, As the years elapsed, if becane clearer and clearer
how preseing the economic and eocial problms of,Puerto Uico grew and how
f he continuous debate on independence versus statehood, wm leee and lees
related to realities. Independence, sctparafion, would nean to overturn
and.upeet and destroy an econorgt that had now developed within the new
relationships, Statehood would man the asewmption of overwheldng
obligations of a fiscal nature, way beyond the capacity of the people.
Still the people of Puerto ItUco contiwed to feel that representative
governneut, govornueut by conoent , gwernmant of the pople, by the people
and for the people, was as much their birthright aa that of any other people
in the world. Thus, there developed a profound sense of frustration in
Puerto Ptico. There was widespread diesatisfaution, both for political and
for economic reaeoaa. Thirty more years elapsed during which Ynerto U c o
>
continued to agitate itself in endless debate.
The year 1040 broqght about a great change in Puerto Rico. The
people took now a new apwoach to their problem. They decided to use the
legislative powers they had under the Organic Act of 1017 to zuarlc a new
course for theneelvee. In the election6 of 1940 the majority of the people
in Puerto Ilico suecribed to the proposition that the old queetion of our
political status should be temporllsily set aside mid that they ehould embark
in a program of ecouonic developent. Thua was a new Poerto Uico born.
What hae happened in these nearly twenty years is a ~atfer of record.
Iiowevor, although in 1940 the atatue question was set aside, it was
obvious that the question could not be indefinitely po~tponed3,P~ forn o other
reason, because political and economic quoationer of governaent cannot be
colilpletely reperafed aad divoroed. 80, in 1 W the Legislative Assembly
of Puerto ;%co ruranioaoualy decfdad that fho tine had arrived now when the
political question should be explored anew. Unaniuouely, the Puerto ilican
Legislative doaettbly decided to propaaa to tbe Congreas that the people of
Buerfo Itico be consulted as to whether their politioal status ehould be
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statehood, independence or dominion etatue. B i l l s were introduced in the
Congress t o that effect. IIowever, thoy wera not acted upon.
By 1948, after the realignment of political forces which had
started in 1940, there existed in Puerfo iiico three political partiee;the
Popular Democratic Party, the Statehood 13arty, which since 1953 c a l l ~ i t s e l f
the Statehood RRpublioan Party, and the Indepeadance P8rfy. Tho Indey
pendence Party went to the polla that year with independence as i t s main
plank; the Seatehood Party wopt to the polls with statohood ae its main
plank; the Popular Democratio propoaed to the people a program calling for
the vigorous continuation of i t a euononic and social developent program,
and as to the political stat= question, it propored to the people that
Puerto lkico should reek self groveroasent on tho basilr of a political
.constitution of its om, adopted by the people themselves, within a
framework of economic and polificsl relationshipa, between the body politic
so created and the United Stater, to be established on the basis of a
compact, Thie would allow for the continuation of the basic econonic
relationships which had obtained since 1900 to which the economy of %orto
Ilico had already adapted itaelf. The people voted for the Popular Denocratic
program worwhelmingly, I had tho honor of being elected on tho basis of
that program as the bsident Comisaioner of Puerto IEico. The duty
devolved upon me therofore to introduce in Congrees a b i l l which would
embody the propoeals the people had voted for. I introduced the b i l l
during the 816% Congrees, in its second eeeaion in 1950, PI coupanion b i l l
was introduced in the Senate by Senatore O*&fahoneya nd Bufler, of Nebraska.
The bill becaue a law on the 3rd of July, 1960. It ie now popularly
referred to in Yuorto Mco ae Public Law 600.
Public Law 600 WCUI enaoted, as if is atiated ia its own text,
"fully recogni~ing the prinoiplo of govermwnt by oonsentw and "in tho nature
of a cor~yacf~, Its ]purpose wes "that the people of h e r t o Zico my organize
a govarmen* pursuant to r cloaetitution of their wn adoflion", It waa to
become effective upon its mceptme by Puerto ZLioo in a reforendun. Ahxi
it was ao aceeptod by the people,
It was prmided in Public tcur 600, 818% Corrgress, that the consti-tution
oP h e r t o &ico be drafted by a constitutional conveption whose nenbers
would be elected by the people of Paerdo SCico; that it be adopted by the
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people i n referendoas,;it be t r a n d t t e d by the Freridoaat to the Congress for
ultiwatc approval. Upon its approval by the Congress the Constitution would
become effective in accordance w i t h i4ie bmm,
The Conetitutian of the Commma;alfb of Puerto Uco was so drafted,
adopted and approved, and beom effectLv8 0x1 %ha 25th of July, 1952, when
the Comznvealth of Puerto Moo was proolaimed.
W e r tbe terms of Public Law 600, at euoh time as the Constitution
of Suerto Rico becane effective, a nulniber of sarctiom of the Organic kt
of i-erto IZico stood repealad, while tho remaining eectiona of the Organic
Act were continued as tho l?wrto 2iioan Pedosal Relations &t, in order to
establish the r e l a t iouship betmen the C ~ i w e a l t han d the Federal
Government. An examination of the Pue~ltb %cmi Fedoral *%lations Act w i l l
by itself explain w& euch sectiona o i fhe old Organic Act were so continued.
They define the gsograpbio limits of Puerto .liao. They guarantee certain
rights to the United 3tateb aAtisene in Ynerfo .%DO, They determine the
fiscal aud econamia relatiowhips of Puerto Diao with the United States.
They declare tho oitizonr of h e r t o Uico to be citieeno of the United States.
They rcier 30 the control and ure of the public domain and the waters of
Puerto ltico; to the extent to which Federal law applies in Puerto Ace; t o
the position of the Resident Conmisrriongr; to the scope of legislative
authority vested in the Co~rmamealth; to the Wnited States District Court
in Puerto iiico, e t a. et c.
Therefore, those sections of the old Organic Act which were naintainod
in operation as the merto Rican Federal Relations kct determine the funda-mental
political, fiscal and social relationships between Puorto Plico and the
United States.
Seven yeare have elapeod. Experienco has accumulaf'ed and it is on
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the basis of that experience that H.B. 9234 now proposes that the Zkcrto
Bican Federal Ilelatione Act be revised, in fact, reenacted; that it be
clarified, modified and codified.
This is what E.R. 9234 intends to do. In-analping the b i l l , I shall
start by pointing to the f a c t t h a t it consist~r of only three eoctions:
Seation 1 provides for tho adoption of the Articles of hrnauent Associ~tion,
t o eubetitute in the compact for the present Puerto Rican Federal Relatione
Act; Section 2 provides for thb consequent repeal of the h e r t o Mean
Federal iklations Act; Section 3 providaa for the procedure of adoption of
the Articlee of Pernanent Association, in the saw manner that the Puerto
Rican FederalBelatioas Act waa adopted acr s part of Public Law 600, that
is to say, both by enactment of Congreae and approval of the people of
h e r t o 2ico. discussion shall actually center on Section 1 of thics b i l l ,
which spells the Articlas of Permanent Aseoaiation.
The f i r s t matter I shall refer to is aa to why we should call these
articles, Articlee of Pema)3ent AiBaoaiation, instead of naintsining the old
name of Puerto iticaa Federal Belations Act.
Articles of Permanent Aseocfation not only is =re deecri~tive, but
it conveys the concept of the permanency of the association of Puerto itico
to the United States. The provisions contained in theae Articles may be
modified as time goes by; wen the nature of the associatkon may change, but
it is the purpose and intent that the fact of assmiation of Pusrfo aico to
the United States 'be permanent; that the aasociafioa of Pnorto iUco to the
United Stateb is not to be deemed tenprarg; that ultimate separation is not
1
In considering the aiztmn &ticlee oi Perauurent Aesoaiation, that
is, Sectjon 1 of the bill, I widlh to call the attention of the Conunittee to
the fact that there is a parallelism in the order of those articles ae
compaqd with the oHer in which the aeatiom of fhe Federal Ilelations Act
appear. That is to aay, Article I corresponds to Seation 1, Article 11
correspond8 to Section 2, mad eo forth.
The eectione of the Podera1 Belafiona Act m e twenty one, but
becaaso the Organic Act waa made of fifty eight articles and unny of then
were repealed, there are many -cant eectionrs in the Federal ~hlations Act.
&numeration is theref ore oalled for. Therefore, beaideti d i n g clarif i-cations
and mdifioations, the present bill renumeratcs and codifiea the
present provisions.
I ahat1 refer now to Article I, which substitutsa fox Section 1 of
the Puerto Iticaa Fadoral Relations kt. Articlo I describes the geographical
linita of Puerto' Bico ae doe8 Soction 1. Intorcstingly enough the use of
fho word "belongingw in Section 1 of the Rtderal Relations Act hae been
conitrued by sone not aa what it is, n geographical doaoription, but as
intended to define the political statue of Puerto Rico, to declare Puorfo
Rico to be a mere poasearion and therefore to negt~fe tho signifioance of
the Cop13onwoalth. Although thore ir no merit t o such noneenso, in re-drafting
Article I, new language is wed not subject to suoh construction.
Paragraph (a) of Article 11 in H.B. 9234 oorresponds to Section 2
of the Federal Palations Act. Here we find technical amndpente, I beg
that the explanation of theee ahmges be left to the Secretary of Just ice,
Mr. Cancio. In addition, paragraph (b) include6 reference to full faith
and credit to be given in the Comuomroalth of herto Mco to the public acts,
records and j'lidicial proceedbqp of the several States of the Union, the
District of Columbia sad the ~ e r r i t o k e sa nd Posseeeions of tho United
States and 'viceversa, refleatinp ]provisions of the Consfifution of the
United State$&paryrapb (o) mfers to extradition.
Both the provfsione of (b) and (c) are a matter of law now, but
because of the funaaPrenfa1 importance of there prwiaione, it has been
deemed proper that &hey appear in %hie funbmmfal Bypo of legislation.
Again legal counsel may furthw dwell on their sigdfiomce.
Arfiale I11 of H.%. 9834 generally oorreepaads to section 3 of the
Puerto Bican Federal Relations Aof. However, o$anses are made, both as t o
the sequenoe in which the provisions appear and ae to the substance of the
provieions.
The provision on tho public indebtedness i n not included, it being
tho purpose that the publia indebtednoes of the Commormealth be limited by
i t s Conetitution instead. I wiuh to-call attention to the fact that under
Section 2 of the bS11, it is provided that uutil the Comaonwealth of
Pnerto 2ico by amencb~nts of its Constifut ion shall adopt limitations upon
its debt incurring eapncity, muah debt shall not exceed the linitationls
now set forth in Secfion 3 of the Puerto aicen Federal Xblatione Act.
under paragraph (d) of Artic'le I11 new language h e hen addod so
as to establish exehlption by the Comaonwealth of Puarto llico of a l l
obligation8 issued by the United States or its authority or by any State,
Territory or Porrseesion, ar now provided in revereed order, This reciprocity
ie now granted by Puerto Uican law, but it b been considered proper that
it be made a p t of them fundamental provisions,
Paragraphs (d), (e), (f) and (g) are not a l l to be found in Section 3
of the Puerto Ucan Federal Aelations Act, I ehall preeently point to the
reasons for their imartion here.
The provision to be found under paragraph (d) reproduces provisions
of the 1900 Organic Act which were continued under Section 58 of the 1917
Organic Act; also a related provision to be f o d in Section 9 of the
Federal Halations Act,
An important Prodifioatioa is made, At proeat, articlos of nerchan-dise
'of Paerfo Bican maaafaetare coming into the United Statee for consumption
o r sale, enter the mainland market subjeot to a tar burden equal t o t h ~ otf
like articloe produced in the mainland by virfuo of the levying aud collacting
of a tax equal to tha* iaposed under the internal revonuo laws on like
articles of United Statee domestic nanufscfure. Thia means rum and cigars
under United Gtatea Treasury interprofation. The proceada are covered into
the Treasury of the Counonrrealth of h e r t o Ilioo. Under paragraph (d) the
Conmronwealth would instead collect itself a fax not highor than that
collecfed under Conmomrealth law on the same produqte when consumed in
Puerto Etico, This tax ieXarer than that collected on tho like articles in
the mainland under the United Sfstes intarnal rweuue code. But an additional
tar muld than be collected by the United States Treaeury on such articlee,
equal t o the difference between the amount of tax paid in Puerto Bico
before ehipent and the a~ount of tax collected ia the uainland on the like
articles of lai inland mnufacture and this additional tax would bc covered
into tho United States Treasury. To illustrate: run produced in herto
aico and consmod in Puerto Uco is subject to a Puerto Rico tax of $6.00
per gallon, which is covered into the Treasury of herto Itico. Run produced
in Puerto Itico for transportation and sale in the rminlnnd, is subject to
a Federal tax of $10.50 (equal to that lovied on whiskey in tho nainland)
and the proceed8 are also covered into the Treasury of Puerto nice, Vith
the, adoption of Article 111, (d) Puerto Xco would collect on the run
1
shipped frou Puerto ILico to the nainland $6.00 per gallon or less, while
an additional $4.50 or mre would be collected by and covered into t a
United States Treasury. The language allows the Comomre~lth of Puerto iGco
to collect a lower tax on shipped to the minland thrzn on ntn consmed
in herto Itico, in which caee the Federal tax would autormtically and
correspondingly increase. Thus the auount covered info tho United States
Treasury nay be rmde gradually higher.
I nf%y say now, I&. Chairam, that we in Puerto iiico believe that we
should not be eo proud as not to accept help when in need, but that with cz
sense of responsibility, aud of self rospct, when the the arrives that
we c q aseurm greater reeponsibilities by ourselves, we ehoulO assme then-even
if we m y have to tighten our belts an inch or so. So, with this
proposal we intend to give up part of fhe run tax we are now getting. The
Secretary of Zhe Treasury nay give us the fignree as to which it neans
to our Treasury. I will cone bnek to this philosophy again a little
later, whon we cone to isticle VI.
Paragraph (e) of Articlo 111 r~erely reproducee the preaent proviaioi~s
of tho Federal income tax laws as thev now apply concernine Fuerto Rico.
* According d4h the established principle, the tax laws of the United States
do not apply in PUerto :tic0 upon incone of residents of Puerto :tic0 derived
iron sources within Puerto Ilico, but when it comes to incones derived by
residents of berto Itico from sources outaide of Puorto Uco be it the
-,.@A+
mainland or a foreign country, the Pederal income tax be paid on that
outside income.
Paragraph (d) has been inaerted to make sure that the taxes incident
to eocial*security laws of the United Statesr may be made applicable to
Puerto Bico without conilict with %he general principle that Federal tax
laws do not apply in Puerto Blico. As you know, eocial security lawe except
unemploymenf inaurame, now apply in Puerto Bico and the accompanying taxes
are therefore collcctod. There ir a bill pending in Congress for the
inclusion of Paerto Wco in the Fadera1 rraenplopcmt insurance systeu.
Paragraph (g) reproduces the provision now to be found in Section 9
of the Federal Relatfans Act to the effect that the internal revenue laws
of the United State8 ehall not ap2ly in Puerto lUco, with the above
exceptions.
The other paragraphs reenact extant provioions of law.
Section 4 of the Federal Itelortione Act of Puerto 3ico was one of
Qhose repealed by Public Law 600. Advantage has been taken of this vacant
section of the Federal Relations Act to insert, in the intereet of logical
sequence, proviaiona that have been in effect since their adoption as part
of the Orgmic Act of 1900, and that were oontinued, ae before eaid, by
Section 68 of the Federal iJ&lationa bt.
Article IV therefore provides that all nerchandiso and article8
coning into the United States from Puerto 300 and coning to Puerto nico
from the United States shall ba entered at the several ports of entry frae
of duty. For purpoaea of clarification, langu-o has been added to tho
effect that besides freodon from euston duties, the interchange of
mcrchandlse between Puerto Bico crnd the mainlculd shall be carried out,
not only f ree of custom duties, but of quantitative r e ~ ~ t r i c t i o nosth ei-than
those heretofore imposed and now applicable, or that would be applicable
in interstate trade, 'Implicit special reference is thus nade to the present
- provisions of the Sugar Act, which reetriote the mount of refinod sugar
which h e r t o f ~ i c ow, ithin it. overall eugar quota, may ahip to the United
Statea. In passing, lef ne say that thie reefriction on refined sugar
means a &eat loas to our econouy. The figures I ham been furnished
go beyond #20,000,000 a year.
The paragraph which begins in line 12, pgCe 7, refera to foreign
products inported into Puerto Itico riiubject to a lower duty than like
products irzported into the United Statee. The xeaeon for fhie provision
is to be found in paragraph (b). Paragraph (b) provides, as is the law
at preeent, that a l l articlerr hported into Fuerto Rico from porte other
than thorn of the United States, shall be the sane as those required by
law to be collected upon articles inported into the United States from
foreign countries. Ae to this there is no change. Hcnvever, it i s prwided
that auch r.ates nay be nodifiod, as Congress may provide, at the request
of the Comonwonlth of Puerto Riuo.
Thus Article Nwould leave room for Congress to naks a t the request
of h e r t o Ilico other exceptione than coffee in the uniform application of
t a r i f f rate8 in Puerto ilico a8 coqwod with the United States. The
provision on coffee has allowed for the protection of coffee producera in
Puerto Rico. The proposed provision my allow for the relief of the
consumere in Puorto aico or nay help in our iudustrializlttion efforts,
The matter is left to the ultiElate decision of Congroso. The purpoee is
to allow flexibility to adjust the tariffs aa applied in Puerto Rico to the
special needs in Puerto 3ico without prejudice to the fundamental principles
of free trade between mainland and Puerto iZico and due reciprocal protection
to the merchandise going fron an area into the other area.
The provieion concerning coffee to be found in (b) is just a
reproductiolr of the present provision of law abwe referred to.
Paragraphs (c) and (d) substantially reproduce present provisions,
to be found in the 1900 Organic Act, wffh a chenge in procedure. At present,
the proceede of the collections in custom on Puorto Bico, are not, as the
1900 law provides, actually paid into the Treasury of Pqerto Rico but are
covered into a special fund; adniniatrative expensea are paid out of this
fund and the remaining m m t is then covered into tho Treasury of herto
Rico. Under the proposed procedure collections would be paid into the
Cormonwealth fund as they are collocted while the United States Trsaeury
Department would have at its disposal fron the very bogining of the year,
the full mount estimated by the Secretary of the Treaeury of the United
States to be necessary to defray all the administrative expenses during
that year.
Paragraph (f) authoriees the Preeidenf under applicable Federal
law, to negotiate trade and comercia1 agreenents with special provisions
for Puerto Rico. Since flexibility is contenplated in the application of
tariff rates in Puerto Riuo, them provisions concerning reciprocal
agreenente are n logical consequence, so t h ~ tde creases in the rates Esade
for Puerto aico nay be also conpensated by reciprocal conceaeions made on
behalf of Puerto Rico,
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Section 5 of the herto Bicm Federal ltelation~ Act beconeeArticle V.
Technical uodifications and correctione are made whose explanation I leave
to the Secretary of Justiae,
Section 6 of the Federal Ilelations Act at present conteains language
which has become obsolete and anneaessary, since the creation of the Cormon-wealth.
It is obvious that the Cornonwealth met take cae of ite own
expenses, and the Federal Governnont pays the expenses it incurrs in Puorto
Gico. flowever, following tho same philosophy underlining the changes
previously discussed relative to the tar on articles shipped fron herto
rbico to the,United Statee, language has been inserted providing that the
Comomealth may reimburse the Federal Governnent of expensee incurred in
Puerto Ilico in the conduct of office8 rrud agenciee. As the economy of
Puerto Bico deyolopa, it i s proper that Puerto Bico may gradually assme
the burden of such expenses, I nay say thst s precedent has already been
established. The expenees of the Alcohol and Tobacco Tax Unit of the
Trcasury Departnent operating in Puerto Rico are now deducted fron the funds
collected ae taxes paid on run shipped to the United Statea1 w ith the express
consent of Pucrto Bico. !his precedent nay be progreeeively followed.
Article VI further provides $heat the Government of the United States
w.y, under such conditione ae m y be prescribed by law of the Congress,
delegate or transfer Federal funcfione ox servicee to the Goverrurent of the
Comonwealth. Tfrere are already precedents for this, For rany years the
State Department has delegated to the Govement of llxerto 2ico the iseuing
of passports, a very convenient arrangersent for the inhabitants of Puerto
itico; again, the Harrison Act, which regulates the selling and prescribing
of narcotic8 has always been enforced by %he Secretary of the Treasury of
Puerto Rico, The Cona;lomealth paya all expensee of enforcenent while
violstiona of law are, of course, taken before the United States District Court,
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Section 7 of the Organic ~bat i 1937 placed the public doahin of
Puerto %ao mder the control of the Ga~ermat of h e r t o iiico, to be
odulniste~ed for the benefit of idze people of Pun,~fo rtieo, Paragraph (a)
of &Qiale VII ' I r r i ~ atU a =+it er into groper psr~pecSf ve since the creation
af the Comonweal%h,
Paragraph (t ) of htl%Scle VIX ha8 no ceulaferpart in Sect ion 7 of the
Federal &la.l;iane Act, Lrr this c&naoc$ioa if rur;y be rendered *hat the
eiaa of Wl.ts Riao S.e mly* 5 , W aquare uilse, wbixta tb poplation is now
about 2,800,000; he10 ow 3-d DO$ arable; land fberefore, is very
t "
o.aluab$a isr Fuwto I$ioo, 3Cd glow wi+i&out saying that *here cran be no question
%bat whatavor land is a$edad in Puedo ~Xcto fox the paulpose~ of the Federal
in nattqr of defense. Wlf it ahmda &o rsaaaa %hat vbile a l l lmd that m y
be neceesesy for $ha uee of %ha Federal a0mmmf atrould be raadc mailable,
any land hold brytbxs &&era&G ovesrrnasrt mhiab ~ a m dso be neocsaary for
federal use snd whSic& msy be d i r r w~ith~ by Ofre Federal Governnent,~hould,
in the in'bersnt of &he ecomny, b~ put $0 use by Gher C o m o ~ ~ a l ot rb private
individntr&@a s the caw uay Be. In order t o nalt8 B defternination as Co f i e
present @$-tion arrd what raa~r be dme either by the Congreats ox the Preaihwb
$a Anfeeet of Ohe bosf. ago of w h pmpelfPI prvsgrgpb (c) povides for
a report to be rendered to %he Preeident and t;o the Conpee8 RS to present
faderal holdings.
Sectiaa 8 of tho Federal Relatione &ti refere to harbor weas and
navigable sfr.xms., Article VXEX of 8.B. 923.4 reenaote Section 8 with
clnrifying changes in vim of me crejrfion of the Cf.ouyonwoalth,
Saction 9 of thc Federal &latione Act prwidea that the statutory
lawst, af 4he United Statca shall have tho sana force and effect in Puerto Bico
as in tho United Statee, with tliree exceptions~ (1) laws which are locally
inapplicable, (2) where the Federal Ptlat ione Act itself provides otherwise,
and (3) the United States intarnal revenua lawe. Article M of tho bill
under considerat ion stat ee the erne ,pincii>les in uore precise language.
It nakee clear that the federal government has and m y exerciee the sar-le
power in Puerto ILico as in any Stato of the Union except for the special
provision on fisc~l mtters; that with that exception the statutory laws
of the United States have full force and effeot in herto ilico to the saue
oxtent thh in any State. It ie enphasieed that for such laws to apply
in Puerto itico there is no neceeaity of specific conaent by Pucrto Itico.
It is also clarified however, thet were the Congreee to exercise other
powers of legislation, fhe laws eo onacfod would have force and effect if
consented to by the Cormonwealth of Puerto Itico.
Paragraph (b) of Lrticle M mkee further clarifications concerning
lawe alroady enacted. It is expreesly etnted that such lms will continue
to have force and effect in Puerto Mco equally as if Puarto Bico Irere n
aeuber State of the Federal Union, oxccrept, of' couree, inaofnr ae they m y
be in conflict with the Articles of Asnociation theneolvee.
AEI to prospective law, (c) requires oxpreas rlention of Puelrto
,%co for their application fhe?:oin, A similar provision to that is to be
found in the Gum Organic Act. Thia practice will avoid uncortaintiea
na to the or non application
in Puerto Bico
-.
Section 10 is reenacted lowing out, however, obaolete language;
it becoma Article X. It refers to the oath to be tRkon by public .
officinle.
-18-
Section 11 of the Federal Relations Act ie obeoletc md therefore
repealed. Since the proclitovrtion of the Cor~onwealth no reports are
required by law to be nade by the Qovernor or heade of depnrtnents to
officials of the Federal governnent.
I ehall pauae here to point out that the eectiona of the old Organic
Act fron and including Section 12 through Section 35 were repealed upon the
Constitutioq of Puerto Ilico beconing effective. 80, the next section in the
Federal Gelatione Act to be considered is Section 38, which becones
Article XI in the present b i l l ,
Section 36 in the Federal llelatious Act and Article XI in the new
b i l l refer to tho Ibrilidont Comieaioner. The language has been redrafted
and four changes a r e nade. (1) The t i t l e of the nbs ident Colmies i~neri~s~
shortened to that of juet "Cormieeionern. (2) Since under preaont law
recognition is to be given to the Cor;luiesioner by a l l departrtents of the
United States Governneat, but hie position in the Houee of Llepreeentativee
is determined by a rule of the House, it hae seenod proper that the rule
be made a part of these Articles. (3) The Reeidonf Corauissioner ie now
required t o pretaent hie c o r t i f i c ~ t eo f election t o the United Statee State
Department. This is an obaoloto procedure. It is proposed instead that
the election of the Resident Codseionor be certified by the Governor of
Puerto EEico to the President of the United States and to the presiding
officers of the Bouae of ibpreacntatives of the Congress of the United
States. (4) In the caae of vacancy, the Federal Belatione d l c t now provides
that the Codeeioner be appointed by tho Governor with the advice and
consent of the Sonafe of the Colplonwealth. Paragraph (d) provides that
the vacancy be f i l l e d as datemined by the Constitution or lawe of the
Commonwealth, This would pernit special electione fo fill vacancies,
instead of filling then only by appoinbent,
Section 37 in the Federal llelationa Act boconee Article XI1 in the
bill before UB, The present language of Section 37 is rather obeolate,
The new language is precise and alear. It uay be seen that while Article IX
defines federal powers, Article XI1 defines Comonwealth powers. A perfect
balance is fhua eatabliahed.
Section 38 in the Meral Belatione Act refers to the Interstate
Corserce,Act, This povision is considered obsoloto and unnecessary.
The next eectione of the Puorto Ricm Federal Eelations Act,
Sections 41, 42, 44 and 43 refer to judicial mtters. They are all condensed
into two art iclea; Article IPLIX arrd Article XlV.
In Article XXIL an inuwation is proposed in the interest of justice.
It is provided that the preeiding Judge nay, with the coxmen* of the parties,
authorise trials or proceedin,e to bo condacted in the Spanish language,
There ie a large percentage of people in Puerto ~ X c owh o aaster the
English language, but there ie a'large percentage who do not, This ueans
that nany people m y not act ae jurors at all becauee of their inability
to speak the English language. It also meana that in the ceee of a defendant
who does not aaater the Eqlish language, the prooeedirys, while conducted
in the Engliah language, require continuous tranelation by a court interpreter,
a tedioue and tine consuming process. The nmber of lawyers who nay appear
'*\
before the ~ o & t tonds to be linited to thooe with full coruaad of the
English language, In spitc of the on the spot tranelation, as perfect as
it m y be, it is eaey to underatand how there nay be a language barrier
between defendants and jury, Howevor,the provision ie optional, at the
diecretion of the judge if alp.eeneht between the parties, The purpose then
ie to bring justice closer to all the people,
Article XW provides for tho revision of final judapents or decrees
of the highest court ~f the Cormonwealth of Puerto 1Lica)in which a decision
could be had/by the Suprerae Court of the United States in like nanner as
with reference to the decieiona of the highest courts of the several States.
This would equa%t)?e Cornonwealth of Puerto Eico in this respect with the
States of the Union.
Article XV of the new bill takes care of a situation which has
\
developed since the inception of the Cornonwealth, In a nunber of cases,
laws which, in accordance with the l?edasal ;&elations Act, would not apply
in Yuerto 3ico have blom tlade applicable by flze Congress with tile coneent
of the Comnwealth, Swh was the ease with tho mended Harrison Act
recently adopted, with the provisions concernkng industrial alcohol to be
found in the United S.tatea Internal &venue Code and with provisions to levy
sugar proceasing tax, Article XV would rake clear the validity of euch
laws unqueetionable.
Now we CMO to Article XVI+ In accordance with the philoeophy of
the Coznronwealfh status, Puerto PUco.shal1 have a eZnilar position in the
exercise of governmental powers as a State of the Union, and the Federal
Governuent shall exercise in Puerto Rico eseentially the earie powers as in
regard to a State, with two miin dif ierencos: (1) the apecial provision
concerning fiscal mttors, (2) the fact that the citizena of Puerto Bico,
although suhjsct to Fedwnl law aa if they were citizens of a State, do
not participate in tho exerciee of federal powere through their participating
in the election of the President, tho Vicepresident and the corresponding
nenbers of both llousee of Congress.
The provisions concerning fiscal uatters are predictlted on two
fundmental considerations: (1) a 13after of principle: there should be
no taxation without representation, (2) Ptterto Ilico cannot afford to assme
the obligations of Federal taxation aa a State,
However, the fact is that not only ie h e r t o Bico outside the fiold
of federal taxation, bat it receivee the benefits of the operation of the
Federal Goverment agencies in Puerto ~lico, in charge of illportant govornnental
functions, whose exponeos are borne not by the taxpayers in Puerto il'co, but
by the t a x p a p in the rulinlnnd. Following the saue philosophy as with
\
Article 111, according to whi& Puerto Rico would be giving up sone revenues
it now rdeivea, and with Artfcle VI, whereby the Comonwealth nay reinburse
the Federal GovemuaKt for ife expenses in Puerto mco, it Ee envisioned
that the tine nay cow Prhen the circumttmcee juetifying epwial fiscal and
ccononic treatnent for Puctrto dice rjay have diaappered,
This would leave only mttere of principle. h f i c l e XVI provides
fiscal provisions of the conpact, under certain
open to reyieion by the Congress, giving: due consider-ation
to such proposals as the people of h e r t o liico nay nake. Since
natters of an economic and fiecal nature ara alnost inextricably intertwined
w i t 3 mtters of a p l i f i c a l nature a d because aattere of principle becc-ue
involved, the reviaiw of the fiscal relations would, of neceesity, call
for the re-oxmination of the basic terns of association, Thus consideratio
would also be given to such propoeala of this nat ople of Puerto
Bico, in a plebiscite, nay wish to proaent to
e that it is a cotmon endeavor that the frauework of
the relations en the Cumonwenlth of Puerto ,Uco and the Federal
Goverment should always be equitable and just; that they should always be
based on the sound and fair principle of goverment by consent. On the
other hand, it would be idle to anticipate what thoso relatious should be
in the circunstances of aa ew.ieioned but yet improcise future, The
problem is not to be solved by this generation. It is not this generation's
reewnsibilify. Tt i e not .bhie,generationlasu thority and power to Ceternine
about this problon. Therefore, Article XVI. norely points to it and provides
for its proper attention.
atated at the beginning of my atatauent, the ltrticles of
sociation now proposed are predicated on the aesunpfion that
Puerto 'fiico hae decided pernanently t o live in association with the United
States; that while the terns of aasoci~tion m y change, the fact of associ-ation
will renain. Psticle XVI, I repeat, ie predicated on that assmption.
Needless to say, at such the as the Legislative Asseubly of Puerto
Rico dght call the people to a plebiscite to deternine wliat proposals were
to be aade to the Congress, nothing would preclude tho Legislative keaotlbly
of herto Ilico fron including anong the formllts aubnifted to the people,
not only possible nodificr~tione to the teme of association itself, but
other fomlas of political relationship than that of aseociation. This
could include, of course, aduirasion into tho &ion; conceivably, but nost
unlikely, it nigh* include even independence,
By the sane token I should say that Article XVI is not intended to
preclude the possibility that at any tine before the attninuent of the
econonic level therein set forth, Puerfo ilico, under its own lawa, m y
hold n plebiscite on the question of its political statua or any other
natter it m y wish to subait to the referendm of the people. Finally,
m y I point to tho fact tht Article XVI is not rvrndatory either on the
b
Congress or on the people of Pllerto Ilico.
Article XVI therefore, represents the projection of a line of
thought which begins with Article 111, which is developed in Article VI,
and terninates in Article XVI, The three of them express the thought
that while association has been adopted as the mat coavenient Elanner
of ro1ationehip:between h e r t o Uico and the United States, the terns of
association nay change with t h e , neefing the needs and >roblam of those
tines and that problas which my arise in the future, w i l l find n norm1
way to be net and solved.
, &. Chairman, I apologize to the Cotslittee for tho extent of qy.
teetinony. The nature and inportance of the queetion I bring before you
has d e it unavoidable,
I boliovo that tho adoption of Che philosophy of association, and
the conaecyucnt creation of the Contmnwealfh of Pu ;o Ilico, a vexing
problen* which for nany years appeared t o be insoluble has been solved, within lj&s$ circamstances it had to be solved. I believe that
credit belonge, therefore, to the Uuifed States and Puerto Rice.
In adopting II.TL. 9234 we would be perfecting what we created fron
1950 to 1952. 51143 would bo Adopting ways aad ireans by which future problczs
can be net in the sane eatisfnctory, peaceful, friendly, fzaternal rimer
that the f i r s t stop in the solution of tho whole qucstion was taken in 1950.
A final word: I have introduced this b i l l , as I said at the
beginning, following the adoption by the Legislative f~s smblyo f Puerto
Rico of a Joint Besolution calling for i f e introduction. Tho Joint
Besolution was duly approved by the Governor of h e r t o Itico. In a
representative douocracy, the elected ropreseutativee of the people mat,
in nafteqof this hport, epak in behalf of the people, in accordmce
- 2 4
with the peoples -date. This ia what we have done and are trying to do,
Proposals which the people endorse a t the polls becoae a rumdate on their
elected representatives, for it was on the etrengfh of their pledge to
support such proposals that they were elected.
La. 9234 represents, therefore, n propoeal made in the w e and as
the result of a clew decision of the poplo, The m t t e r now rests with
the Congress of the United States, And if there were any doubt as to this
b i l l representing the wishes of the people and having their approval, I m
sure it would be c o~p l e t e l yd ispelled upon its subniosion t o then, i n
\
referendm, as provided in Section 3 of the bill.
I feel certain that at auoh referendun the people would appove
these proposals as overwhelaingly aa they approved Public Law 600 of the
81st Congress in the referendun of 1951,
Y
I I deeply appreoiafe fhir oppertuniw . .,!,
' *"$
+ \:!j
.-. r
d:
""4
raIb-Bopse t o Ohe adoption of Joint Realution Ho, 2 by
af the Cumwarealth of P,erto Rice, X had introdaeed en
I'
0% Warto Biw ooamerning 8he politia.cl atatua of the pmplicr aS pus st^ .
PtlbXia &w 660, enatrted bg the 81at Gosagreus and aecepad fhe p@e of
>
Pugrta Rim.
h Zitfle history reey help arr bQdter underrtaod We baskpaad of
wkiah: .ir inteaded to darify and develop thst sonsept.
Atu a rereult af flnr Spaaiah herican fw, it war providail &n Bhe Treaty
S s l W &jam% Weto, were creded tvJr *he Crown of S p b $0 fhs Waited States.
& iC wrsb4as idaoided by Wle Suprem C O W of the United 8ta-b~. fhia creaeion of
em~&iga&ttyE& ,Jliol e n b f l -hhe incorporation sf &.rto Bioo fnto tbe T3nih.d S t a t r ~' 4
*ict P e s ~ t 0w o o r r u a ppwc-t to. Int not a put of the Opit.( Btat... Thm,
s +& polfficrtri crat?cigp* 95 'M~ i n a ~ ~ p ? 4 iBpet rerdif orpm rrm b t o being in the
i' : 8il
~ k ~ t a t peo ~a ~ t i osayl a ~ r ,m er , the treaty it d e.m ~msp~a the onp pear ?
Z 7
6 p st'"
we what tha p l i t i t a l a t a t ~ ~6~heo ple ople a t P+to ltipo rnCU be.
, , h l
.Puertq l o o , & u put of Cb.<- ieh mqwowl ire; . & # 2 ~ ~ fmOo I in fhe
I . 4 >
I - I . / ..4r - I
I I ~ ~S ~ ~ u t iua .ns o r n u eL gmwinoe. t. p r eme d mi^ mpeoial law*.
A$ the tPmo Ithe ~emS.Oau ad WIC$bISf arm a of e Wya3 &@reeo f N o d e r a6,
of if. ma. 'Wir &$.torr u ooptpsrrrble bo
in bhaue 'm, albeit L the 4wpa of Rprto Bioo npraaab$ien in thr
' , * a s * -
I' -2-
Spanish Parliament, whiah it had enjoyed rince 1889 waa maintained since the
Spanish ~ a r i i a a e n tw ould 1 egi s late for Puerto LUco on certain matters of a *
llatioaal charaoter, $11 other mattera were subject to the authority of the
Puerto Bicran Parliament. , . -
With the separation of Puerto Rico from the rest of the Spanish Lfonarcv
{and with the dlitaq o.cupation of P,erto Rico by the United Statee troop., the
cabinet form of government raa continued for a e h ~ r pt eriod of t ime ; then it -
underwent modif icatioas and finally war aboliehed by aucceoaive military orders,
In 190d the Congress adopted an Organic Act for Puerto Rico and military
government ceaaed. It is a &.bar of hietory that the Prrerto Rican people ae a
whole were ve* mch disillusioned Srith the Organic kt of 1900. Also that after
seventeren yews of agita eed O-ia Act waa adopted by the Congrecrs.
Thisnew Orgaaic Act allowed participation of the people in their own
governmant; at t h e same pime of P,erto Rico were decrlared ,t .o be
cifiaens of the United St~terr. h.
Two schoolo of thought had Qeveloped meantime in Suerfo Bico, One, pointiag
to the faat that a l l territories of the United Statee traditionally had ultimately
become neeiber states of the Union, held to the doatrine that Puerto Rico s h d d
ultimately belrrome a member state of the mion. The other, pointing to the faot'
that Puerto Ria0 waa not a Territory in the sqme eenee than former Territbriee .
of the fTnited States for under the treaty it ha#ot been incorporated &to the
United Statee; Ad that all former Spanish coloniea in the 'New World upon their
separation from Spain, had become independent natione, held that Puerto Ricro ultimately
. >
ehould become a republic as such former coloniee had become.-
The Organic A,ct of 1900 had not merely areated a structure of civil
government for the people of Puedo Rico. It had created .a.f'rrunork of monomic
relations between the United States and Puerto Rico, whi* profoundly affected
Puerto Rioo ' r economic life. Puerto Rico4 a e&onoq which ha&' always been mostly
agrioultural, had continued so to be, and t~ ad now beoome dependent, mainly on eugar c ane.
Z
Cane Gar pu1pt22acfnred in Pnerfo Rico now eatere4 the United States free of'
tariff L r i e r a , The Organic Aci of 1900 had provided that the ram =@tea of tariff
applied on foreign goods in the United States were t o be applied in Puerto Bico and
that th6re would be no cuetoma .duties impollied on mrchmdiee rhipped from the United
8tatee to herto Rteo or from PUerto Rico 60 the United States.
The Xslkii'a ie "ionly 3,600 square miles of land surrounded by $he sea.
Land do;bs not inerea~e, bat the papilation of Puerto Rioo rapidly increusd, Therefore,
after the f i r s t * eurge in agricultural activities had aped iteelf, and sear had
reached a certiaii level of expaion, the opportunities of aaployment did not increeee
at the rame rate ttfppulation increaae, Witb &h& labor forge increasing inexorably,
the rerul t was ewr @ew%wr ulempl~~~senAt.a the yesre elapsed, it became clearer
problems of P,erto Rico
cant inuow* aebatt.4
ees related to Mw realities. -
depead~nce, separation, would maau to gperfurn and upaet and dewtroy aa econoBpr
at bad aolr devrrliopcd within the new relatirutahipa. Statehood would *an the assumption
elring obligations of a f iecal &tire, ray beyond the capacity oi the people,
S t i l l the people of P@o Bico continued to fesl that repre&n6btiw
9 .
gmrru&nt, g o v e r m e ~ ~ . ~ , ~ ~ ~g~w,eor~mme~nte o~i$ t,4 e beople, by the people and for the
people, .was arp mu& their birthright as that of other people in the world. Thus,
there developed a profound sense of flllatrati on in Fuerf o ;&ice. There was widerepread
" .
dissatisiarotiorr, hots gar political snd for econoralc reamna, Thir6y more yeare
h Puerto Bioo continued to agitate itself in endleea debate,
I
,1440 brought abont a great change in b r t o Bico , 'Phe people took now
o .tfieir problem. They decided to use the legislative @owekr they had
7
- , ' pder the Orprnio kt of 1917 to llrL a new oourse for themelres. In elletions
-4s ."
<
*) sX. i -* . 1 -
of 1940 the majority of the people in Puerto Rico euscribed to the ~ o p o s i t i o nth at
the ntd question of our political status ehould be temporarily set aside and that they
-
7,:;.<.z"
1 '
rhould embark in a program of eeonon$c developmnt, TB,u was a new Pverto
^ 8
Bico born. Wh.4 hm happenei$ in these nearly twenty y*&. is a ugr of
~ +A' ' . .
re00xti. n,. ,.
'6 h f 3:. A . .
Haaer, although in 1940 the atat- questiai'"was sot aeide, it war
. L
obviob that the question ciuld not be indef initsly postponed, for 'no other
J. _ * '
reasoh, becuus political and economic queatione of goverrusnt cannot bs ,
completely separated and (UVOrcsd. .Oa, in 1948 the Legielativa Aeeembly of
Puerto Bico danimowly deoided %hat the time had arrived mw when the
pol i t ical question should be explored wew, ~ o ~ a l thye P, ue rto Riaan
hpislatird h 0 a b l y decided to p o p s e to the Coayesa that the people of
7
herto Bico be consalted u to whet he^ their politicai 'statue ahould be statehood,
independenoe or doahion statnr, BilLwere infroduced in %he Congrere t o that
effect. However, they were nof acted upon. a . ' ' !-
i T 1 - 7
lly 1948, sfter %he realignment of political forcks which had a$arted
4 , .
in lI#, there srirted in Puarto Rico three political parties.; the Populas
> -a
Dsarocratic P&y, the Statehood Party, which sintre 1983 cti1.1 itself the' Statehood
' 1
Republican Party, and the f ntbpendence Party, The Indepe~mc eP arty went t o
" . . L
the polls that year with EBdependenae as its main plank; %he Ststehood Party
weat to the polls with statehood ars its main plank; the bPopular Demooratic
propied to the people a program calling tor the vigorous continuation of its
e6onomic and social developaent p~agsam, and ae to the political atatus, qaestion,
it propolred to the people that herto 8ico should seek self governmen% on the
baais of a politioal o ~ t intvt ion of it. own , &opted 5 6 t h e popl e th&elvea,
6 * r .
rithin a h r s n o r k of eoonomic aad pol i t ical relationo- b.i &- , b.t..m thd'&&y $--! ii$ 4
politic so created .nd the United Stetes, to be e.tabl$abiri on the basi..,of a ,
r , n : ~ . &, r CP 3 8 \ "3 >
compact. This mtald allow for the oontinuation of thd ~ ~ o i o ' ~ c o n ogr@t cl* $ion-
,I I t, ' 2: --, * .
ships whieh had obtained sinae 1900 to which the eoonoqy :oi herto Iticofij$z-
-".J ,&,?,. .
':.,?Y$.C: - P ' ,
~l r e adpa dapted i t s e l f . %e people voted for the ~ o @ @ ~ ~ o ~ ~ a t i c
" r"f
?.<$t% 3 * 1 , . - ;g{ \, -
I . 4- 1
ovemhelningl~, f had the honor af being elected OS -the fisair of that progrann
ss the b i d e a t Cdrrsioner 03 h e r * o Bioo. Tha d w o h d opaa nm there-a
;* ?@ * .-. g$,.;,?g,?F-: gggm$i
fore to &amo~uae Cop$rees a b i l l which wnld d a & the proposals +he
people had voted $or, roduoed the bEll 4mfng the 81.t Carsg~rem, in a20
second session i n 1850 coljpaaioa b i l l was introduced in the Seuate by
Senakors o%&oney and Butler, of Nebraeka, The b i l l becslge a lm on the 3rd
af July, 1960. E* is norr popalarly referred *o in Puerto Moo as Public Law 600.
h b l i c Law 880 was enacted, ao i t i a sltated in its own text, "fully
recognizing &he principle of government by consentw and *in the aaturer of a
compactW. I t e purpoae was @thaf the pop%@of Puerto Rico m y organike a go.~gmtJ
ment p ~ s b a a t o a constitution of t h e i r awn adoption*, It was t o becrome
eff&tutiva tapan its aacarptanos by Puerto Bieo in a referendum. And it wm so
. ,
accepted by the pgople t , , ~ , :
It was provided in Public Law 600, 81st k g r e s e , that the constituttikn
of h e r t o Rirpo be drafted by a constifutional conventinn whose members would be
elsrotied by the people of Faarto Rico; that it be adopted by the people in
referendum, it be t r a a d t f s d by the maident to the Congress for ultimate
apprloval* Upon i ta approval by the Congress the Cons titutiun would become
5 -
sffegtive in aacordwae with its fernPo. 1 1 %
B
The Conetitutioa of the Contmonqpo~alth of P,ertcr Rico was so drafted,
adopted snd approved, rusd beaame eff eative on the 26th of July, 1952 when the
, ,
Comomalfh of Puerto Birpt? a s protl%abed. X - .,I, ,
,+.' .
* I I* ..
Uoder the tenas of Public Law WO, a t such %time as the Conetitnfion of
Pnerto Biao becam$ effective, a number of sections of the QrganZc Act of Qn=to
Bico: stood ng.aied, &b{le *be remain- aeotions of the kgtmic Acknare
- *
continued as the Pperto Muan Federal Belationr Act, &,p 6rder to #sf eblish -the
r e l c t ionship between th* Coromeal th d fhe Federe1 ~ o r e r ~ . d i . A' n a d n a t i o n
' .
of the h e r t o B i c a Federal hlationa Act rill by if s e l l explain why%&~h oeations
of the old Organic b 5 were so aontinued. They define the g e o g ~ r a p h i c ~ 1 'o~f t s
Pllerfa Rice. They guararitee certain righfg to the Udted Statee cititem in
PIlgrto Bico. They d e t e d a e the fimcal and e w n d l ~re lsrBSop.hipr of Bterto
Birro with the United States. Thegr dealare the aititeaa of P,erto flfco to be
ditisena of the anited Stater. They refer t o the ~ o d m l are of the publio
doluin the waters o i h e r t o ~ ~ i c oto; t be extent to';hioh ~ . d s r a lla w applisa
in Puerto Riao i to the @rskfion sb the haiden* Cdcyciije~~~styog the ecope of
.,. ,
legislative authority vested is the Copsiponwealth; to bhe mifed SCatea District
, . <
C n ~ itn h e r t o Bico, eta. eta.
, ,
Therefore, thoee Y ~ C ~ ~ O PoLf I t he s ld Organic Aat which were maintained - apexation as the Y,erto Bican Federal Bef a t i one kt tletermine the f
*
politioal, f i rcal and aocisl relationehips betwe,e n- Rterto,Bfco aad the United
1 . . - "
h#arua, * *
i * -
m .- " i
$even year. have e1ap.d. Experienae ha8 a ehuk~ut eda d it i a on the
basir of that erperienae that H.B. 9234 nor propoaea h e r t o Ucan Federal
Belatione Bat be W e e d , in fact, reenaated; that if be cllariiied, modified and
aodifi ed.
Thie i n what H.B. 8294 intends 60 do. In tuwdyt~iag the b i l l , I ahall
rtart by point- t o the fsot that it aoariste of only $Wee eet4fonrr Seation 1
provfdee for the ndoptiw of tho hrfirrlea of Pemmenf A~soctiation, to mubatitate I I I
in the compacQ for We pwwe~tP oarto Bioan Federal Be l a t i~ned kt; Sect ian 2
provides for the cnweqtleat repeal of the herb* Bicran Mered Bwlationa ht;
Secfion 3 pmfder for the proaedtrre of adaption a i fhe kC5cl;es of Penarurent
dreoaiation, in the mame lnanner l h d the h e r d s Bfouv # S ~ B T &B~e latione hot was
adopted a@ r part of W l i a LeLw 600, that ia to may, h8h by mmbrent of Gongrere
and approval of the people of P~(1360 Riao. My diecumien &all aatrcally center
on Seeti- 1 of bhis bill, which rlpelle the &ticlee of Wo-ent beorriation.
The firmt mrPffer I ohall refer to ia am dko rhy ne rbuld call these
artfrrles, Articles of Permanent brsociation, inetead of main%aining the old name
of' Puerto Bican Pederal Relatiosa Act.
. -
I, * ,
The provieion to be saltad under paragraph (d) reprowces provieions of
I "
the 1900 Organic Gct which were continued under 8ection 58 of the 1917 Organic
*at; also a related provision to be loundh Section 9 of the Federal Bslations Act.
An impartant ntodification ie made . At present, articlee of merchandire
of Puerto Rican lllanPfacture coming into the a i t e d Statee for consumption or eala,
enter the mainland market subject to a tax burden e q u l ' t o that of like articles
produaed in the mainland by vir*ne of the levying and collecrting of a tax equal '
to that imposed nnder the interns1 revenue laws on like articlea of United States
domestic nurnufacture. This means runt and cigcrre under WnitBd Statea Treaeury
fnterpretation. The prodeedr me eoaored into the Treaaurg of the Coxmuonwealth bf
3
Puerto Mco, Under pwagraph (d) the Commonwealth would inetaad collect i t e e l i a
tax not higher than that colltcted under Conmomealth law on the lame *reducts
when coneupled in Puerto Rico, This tar is lower than that collected on the like
articlee in the mainland under the United States internal revenue code, Bnf an
additional tax would then be collected by the United States Treaeury on such
articlea, equal to the difference between fhe mount 00 tax paid in Pnarfo Rico
before .hipent and the amount of tax collected in the =inla& on the like article.
, ?
of mainland l ~ a ~ u f a c t uarnsd this additional tax would be c<vered into the United
States Treasury, To illuetrater rum produced in h e r t o hico and consumed in
Puerto Biao i e subject to a Fuerto Byi,c,. o tax e4n#6.00 per gallon, which i s covered ""'0"
*>"%% *', -t .e.p'g
into Obc Treasury of b r t o Wno,, Euih -poduced ia Puerto Bfco for taaneportation
and rale in the mainland, ie aubject to a ~bderal tax of $10.50 (equal to that
levied on whiakey fn the wainland) qnd $he proceeds are alsa covered into the
>,
Treasury of Puerto Bico. With the adopt"i o.n of Article ' I ~ I(,d ) , h e r t o Bico rnuld '*
collect o. the rm .hipped from h e r t o Bico to the nainim@j8,(10 per gallon or
- . ,,%. 3 - , ". * . P
lees, while an additional $4.50 or mare would be colle"ctekr.,b$ and covered into the
.*_"
C'< .+', f* " , 1 z4,K ~ United State6 Treasury. The laupage allowe the Crtnhnonperr;lth of Puerto ' ~ i c o'to
7: "
$4 ti> / , I collsot a lower tax on nu ehipped to ths 'kinland thw-0~ - conauad in ,Rerto
? i s <*11 .I' . +
. . . _. L a , P ;* , 4 L
4
7 , ' t
Bico, in which ch.0 the. Federal tax would automatically Ad aorreapondfngly
inoreaee. Thk the amokt oorsred into the Treaeruy'may. be made gradually . ,
* 3
higher. 1 , , ' I ) G$#$!, a m - , I
.Y+,j-:, i : . ":z * A - - 1 , k > $ ' I
I y .(19 no+, ilr. Chai-, that we in PZ&O MCO believe *La% we
. y*
.hould not be eo proud u not to accept help when in4.nerd, but that +*h a
,,', * . 8 . c : P apm.0 of respneibility, and of aelf respect, fh.n fhe tinre arrives $&$t we
2 + r . . ' -
can ass\laps greater reeporrofMI-Ef3lre by oureelma, we rhoad uasurne them, epeo
, I .
,3 1 if we 4 hage to tighter). our belts an inoh or so. 86, with %hie propeal
we intend to give up part of the rum tax we are now getting. The ~qqx'b3u-y
1 - .
of the ~reaeclry nil1 iive (or hm @wnr u.) the f i r n e e aa to *ah .$k.nhanr
, . " L 4 -
t o our %!reluury. I rill come bauk to this philo~pehj a l i t t l e Iater,
L
when we come t o Artiale VI, , ". .0J ". + - - .
I' Pwagraph (e) of Article 111 amrely reprad-ea the preaent npr "rY oriaion
of the Federal incolrua tax lawe arr Ue$ PF rpply aonoerning Puertlr Bico.
Atwording with the slat ablimhad pinoiple, &he tax lm of the United ~ f a t e e
do not apply in h e r t o Bioo upon inoome of rerridenta *f Puerto Rice :derived
from eoumea within Puuto moo, but when it aomea tr incorers derive& by reaia-te
't . 1 - 8 .
of herto Biao from eourcee oa*eied of herto Moo, &'it the nainlmd or a
'$.' '?.<K*
f m i o~ou ntty, the Federal income tax ahould be paid'on that out*ids Income.
3 7
Paragxaph (d) h~ e &i +hati tho b u ~ ~ $ n e i d e n t
1, .- . *,.. - 3.t
to 80N.l a~emr i ltw~e i of the Unih.d Bfatee may beJ&* applicabh t o X u t o Rioo
-8 ,$< i .
without aolliliot d t h %he general prinuipls tbt
. !, in Puerto ~ i u o . 'h yo* how, .Y uooi.1 aeuwity
@k@i - 3 &$$ Biuo and the eaoompaqying tasem are therefon colleabed. -- , a . pj 8'- -, k
I
&ere i m u b i l l pmdingw+@i'~beem B. B i ' 2 --, ' ' $" + l-.1* ? . %
I, ,i "
I d . , "
I : . . .,-R, hS :n4-. ' -*
T: < .*,# +
: . i
, b ( .
-+ , . . J , 1 S r
far #e Snclruion of P+rfo Biso in inrurmss
at-kar. *;
Paragraph (jg) rqrqducer the pwm.i r.i ~na na to be f sund in
, c
Secrtiogi 9 of the Federal Belatione drcf to the eifecf- that the internal
revenue lawr of the United Stater shall not app;ly in Fuerto Rico, with
,
the abow exueptionra,
The other pwag~aphe reenact erfant proviaion8 af law.
*
Section 4 of the h d s ~ aBl elationa A& of PuerQo afeo ma one of
.thee repealed Py PPblie ]Ear 600. Advantage h u bema faken of this vacant
redtiion of the.$ederal Blatfonr &t to inbarf, Xn: the intererf of logical
sequmae, P~OV~IItQhaEt ~bpIIs been in efPedt afnae their adoption aa part
of the Orhsnic k t of 1900, aml that were cmtiaa, ae before eaid, by
% <
Section 68 of the Federal Wsfatione Acf.
.- *
Article IV therefore pr#ider, that a l l mer~hapdisa and articles coming
into the Ihrited Statee Prum Puerto Itioo and ooming to herto Rico from the
United States ahall bqAntcrred at the aeveral ports of entry !free of duty,
For purporee of clarification, language hae been added to f&rr 6dflct that
a?
besides freedom from c ~ t o mdu ties, the int s ca of mrchandise between
Pnedo Rico and the arainland shall Be aarried out, rnaQ ohly free of caatome
du&iee, but af quantitative restriotions other than a o r e heretofore impoeed
and aow applicable, or tbt would be applicable in iateretate trade, Implioit
speaial reference is thus Ptade 6% $bdCnp@~an$,~psovieioonf s the Sugar Aa t ,
which rest r icte the amount of r e f i n d d a ~ a rw hich &erto Rico, within i t 6
overall eugar quota, laay ehip to the flaited Stater, pare-, l e t me eqr
that this reatriotion on refined rugar asaaa a great lore to Our economlp.
Tljm f i m e s I have been furnished go beyond l)_mD,000,000 a year.
The puraqraph uhioh begins in line,l2 mp 7: * refers to foreign
product8 imported &nto h e r t o Riao aubjeet to a lower duty than like preduots
impoafed into the Unit4 Stafee. The reason for *is provieion is to be found
fa paragraph (b$. Paragraph (b) provide#, am is the law at preeent, that a l l
artiules iatported into FuerBo Biao from ports other thm those of the United
States, a 4 1 1 be the sun u thoam required b in t o be ~ o l l e c t e du pon arficlee
haported ia*o the United States from foreign eoatriea. ds to thie there ia
no o w e , Horever, it i r provided that rueh rates m y be modified, a8 Congreae
may provide, at %he requeat of the Conmumwealth of Paerto Blia,.
Tlnu Article Rf wodd lsgve room for Congrem fo lealce at the request of
herto Bieo oaur exoeptim Qhan coifee in fha dforar applicration of tariff
rate8 in herto WQO so aompmed witat fhe Unitad'#t;&br, Tb provision on
aoffee haa allowed for the prtrtieotion of oaffee prodataerr fn Puerto Rioo.
The psogooed prov4aion m q rllw ior Ofre .relief a' ocpnmmrs ih Puerto
* "I" 1 .
' -
Bioo or y help in ow indhstrialiudion e f ~ o d . . %a ncffe2 ia 1 eft to
1 - 0
1
the illtimate deoision of 43-ers. The .par#a~e 2. ,& , .J..' dlpf l exibi l i ty
3' .
- to w u a t the *iffa u applied in ~ ~ e r tw0oo to '4&b i;i.p.oia~ need. in
* *
* * , *"
k r t o ~ i c owi ahoat pre~udiaet a tbd ~ r ~nt i aue a~t ii~x' m i p 1 1o g free trade
between mainlaad and herto Bioo und due reoiprooal proteotion t o the
an area into the
1
tonccrr n ;n
The provision I--.-l .rhw c ff e e to be found in (b) ir just a reproduction a
of the present provision of law a w e referred to.
Paragraphs (a) and (d) rubetantially reproduce present provis ion8 , to be
."
follnd in the 1900 Organic bt, with a change in procedure. At present, the
proceed8 of the collectioxu in anstam on Puerto Moo are not, as the 1900 i
law pkovidea,aotaclly paid inOo the Treaanr~r of h e r b Rico but are covered
into a special fund; administrative expenses are paid out of thie fund and
the remai* mount ia then covered into the Tnarury of Puerto Rioo. W e r
the propoaed procedure~collectione would be paid into the Caanornrealth fund
aa tbeg: are collected while the United Stater Treasury Department would have
at its disposal irem the vew beginnillg. of the year, the full amount estimated
by the Searetaw sf the Treaaq of the United Stater te be necessary to defray
all the administrative erpearea dmriw that par.
" t 7
Paragraph (3) authbrisea &e &dd@nt imder alipPicable Federal lw, to
negotiate trade m d eomrcial sgrewm$r Wi6h epeeiaj, provisions for herto
Rita. Since flexibility is contemplated in the application of tariff ratear in
* I,
Ptlerto ItLico, these provisions concerning recigr6daZ agreements are a logical
.eonsequence, so that decreases in the r&terr made far Puerto Wco m y be also
compenaated by reciprocal concessions made on behalf of Puerto R;ico.
Section 5 of the Puerh Rican Bederal Relatiom Act becomes Article V,
Technical modificationr and correotiond are made whoae explanation I leave to
the Secretary of Justice.
8ecti~n 6 of the Federal Relations b t at present contains language
which haa become obsolete and anneceraaarg, since the creation of the Comuon-wsaltib,
ft, is obvious that the Connnomealth must farke care of its own expensea,
and the Federal government pays the expenner it incwrs in Puerto Bico. However,
xoi~owing the same philosophy underizning .cne cnangea previously discusred
relative to the tax on article8 rhipped frum Puerta Woo to the United
States, language has been inrerted providing that tho Conmonwealth\ may
reimburre the Federal Govemaent of expemea incurred in Puerto Rico in
the conduct of office8 asld agencies, & the economy of Puerto Rico
developr, it is proper that Puerto Bico may graduully assame the burden of
auah expenses, I may ray that a praoedent has already been established.
The expenses of the Alcohol and Tobaaco Taz Unit of Depart-ment
operatiq in h e r t o Rico are now dedmeted from the funds collected
as taxer paid on rum shipped to the United States with tha erpresa consent
of ~ t l e ~Bt ioco . This tr preoedent be pre~grermivalyf ollowed,
Article VI further provides +&at the Oo~amment of the United States
may, under such condftiions ar say be prescribed by law of the Congreae,
delegate or tranefer Federal functions or serviceti+ to the Government of
tbe CommonweulfB, There are already preeedents for this, For many yearn
tne Sta4e Department hss delegated to the (Pomnmaenlt of Puerto Rico the
irming of paraports, a very convenienf rurrangment for the inhabitants
of h e r t o ~ i c o ;a gai6, the b r r i ~ o n* ot, which r e p l a t e l the sel l ing urd
e.*w / p r e s c r i b i ~of narootioe has a1ra)n kagg enforeed by &he iecretary of the
Tnmuxy of h e r t o Bico, The Co-wealth pays a11 bcp%il~eos f imforcslent
while violations of law, ero,gf courrrrr, taken before the United Stafes
District Caurt.
Seation 7 of the Qwganio Ant of 1917 placed the public domain
61 herto Biao under fhe control sf the Government of herto Bico,
fo be administered for the benefit of ths people of Paerfo Bico.
Paragraph (a) of ArtieXe VI1 brings this mfter into oroncar perap-five
since the creation of the ConmtonwsalCh,
4' a
Paragraph (c) of Article %Z h as no s~@terpart in Section 7
of the Federal Relations Act, In this oomection it aaay be revembered
that the sise of Puerto Rico is only 3,500 square miles, while the
popnlat ion i8 now about 2,300,000; half our land ie not arable; land
therefere, is very valuable in Puerto Rico. It goes without saying
, .
that there can be 60 qkesti&n that whatever land ie needed in Puerto
Bico for the parpores of tifse Federal Goverxnnent, should be made avail-
" ;?" -
?v t ,k * , ;5.;
a -,.*is r
able to the Federal Govenusen.t, specially in mattera of defense. But
it stands to reason that while all land that may be neasseary for the
use of the Federal Gove~rmment should be made available, any land held
by the Federal Government which ceases to be neteeeary for federal use
and which may be dispelzrera with wethe Federal Government ahould be put
to civiliaa private nee of Comrmanwealth in the interest of the economy.
In order to make a determination as to the pseaent situation and what
may be done either by the Congrees and the President in the intereaqf
the beet w e of such property, paragraph (a) providee for a report to
be rendered fo the President and to the Cgngrees as to preeent federal
holdings,
21 I ".,_
i , 4 & l
r - ii ) + -
Section 8 of the Federal bla%Sanr Aot refers to harbor areas and navigable
, ""' .
streams. Article VIIX of H,B, 9934 reenactes Section 8 with clarifying changesi,$?
4
, 0 . view of the creatibn of the Comnonaealth, I,,< ,'
, 7 *
I r
Section 9 of the Federkl Iblatione kt, provides that the statutory laws of.: ' ' -_
the United States shall have the rame force,rrad e f f h t in herto Woa ar in fhe'
? - United States, with three axceptionsr (1) lam which are locally inapplicable, *'''.*<
i .
where the Federal Bslations &t i h l f provider othenii;,' and (3) the h i t e d i
e y . f &*@$;
tes internal revenue laws, Article IX o? the b i l l nnder consideration states:-,- ' "
- - r
e s u e principles in more prscbe laqpye. It I.lres c 1 e a r ; ~ t the federal.. -.
k, ?. - !%, a
ovement ham and, raay ertlerciue the ram8 pomr in Puerfo Rieo as in any sf a%e o'i.
Union except for fhe speoial provieion an fiscal matters; that with mat exception
the rtatutory law6 of the United 8tatea bavs full for09 and sffeot in Paerto Riao
to the same edent in any Btats, f t is emphbcrised that for euoh laws to appZy
in Puerto Rico there is no neceeeity of specific consent by Puerto Rico. It i s
also clarified however, that were the Congress t o exercise other powers of legis-lation,
lthe laws eo enacted would have force and effect if consented t o by the
Commonwealth of herto Rico.
Paragraph (b) of Article IX make8 further clarifications concerning laws al-ready
enacted. It ie expressly stated that such lam w i l l continue to have force
\
and effect in Puerto Rico equally as if Puerto Rico were a member State of the
Federal Union, except, of course, insofar as fhey may be in confliat with the
>
! , "i A,ticler of Ai~eocia%ionth emelvea,
f
iole X, It refers .to 'the oath to be taken -by public officialm, :*, ,
, - 3 : - , ,
. . ~ , I -*:"' ,, !y ' f* .*
7 .J. , :,
to the Resident Commissioner. The language hm been redrafted and four changes
ere made, (1) !!!he Tiiile of the '&esident Conenisrionern is ehortened to that of
1
juet *CornmieeionerR. $%2j Since under present law reaopition is to be given to
~ #
the Conarissiener by all departmente of the United States Government, but hie position
in the House of representative^ is determined by u rule of the Rouee, it hae seemed
proper that the rule be mrde a part of these Articles. (3) The Resident Comiseioner a
is now required to present his certificate of electian to the United States state
eolete procedure, It is proposed inatead that the eleatian
pa. oner Weertified by the Oovernor of Pnerto Bico to the
President of the United States end to the preeiding offieerr of he House of Rapresen-t
a t i n n of the Congress of the United States, ( 6 ) In the ease of vacancy, the
Federal Belatiom ht now provides that the Codsrioner be appointed by the Governor
with the advioe and oonsent of the Senate of the Oommomrealth. Paragraph (d) provider
that the vaaancy be fiZled as determined by the Conatitation or lawe of the Cormnon-wealth.
This would peratit special electione tu f i l l vacaaciee, instead of filling
only
them/by ~ppointmtsif.
Section 37 in the Federal Relations Act becomes Article XI1 in the bill before
I S
age of Section 37 is rather obsolete, The new language ooesa
e, 't mag be seen that while Article IX defines federal powere,
~rticleX I1 defines Comuonrrealth powers.
Section 38 in the Federal Relations h t refers to
This provision' is considered obsolefe and unnecessary.
The next sections of the Puerto Rita Federal %la
44 qnd 48 refer to judicial matters. They are all condena
Article XI11 and Article XIV.
In Article XI11 an innovation is proposed in the interest of justice, It ie
provided that the presiding judge may, with the consent of the b;&iee, authori~e
trials or proceedings to be conducted in the Spanish language.
There is a larg.e percentage of people in Puerto Rico who laarter the English
language, but there is a large percentage who do not. This means that many people.
may not act as juror8 at all beceuae of their inhability to speak the $oglish
language. It also mew that in the eaaa,'d ut~dafendaat who does not master the
ie to bring justice closer to all the people.
Article X N provides for the revision of final judgementr or decrees of the $ '
d-highest
court of the Conamonwealth of Puerto Rioo in which a decision could be ha$ 86
by the Supreme Court of the United States in like manner as'
decisions of the art- of the several states, This
--) of Fuerto 1tico- P the Stater of the Union,
$<<@,:
I L ~ . Article XV of the new bill takes care of a situation which has developed sin
,$a #:>a
the inception of the Canrnonwealth. In a number of cwea,
k' .4
, 4% with the Federal Relations Act, would not apply in herto
-20-
10 , * ' 1 .
I 1
This wkld leave only matters of principle ArticLe XVI provides therefore,
that the fiacal proviaions of the compaalt, under certain conditions, shall be
open to revisioh by th. .Congress, giving due consideration to mch proposal8 as
the people of Puerto Rico may make. Since matters of an economio and f iecal nature
are almost inextricably interwined w i t h matter8 of a politiual nature snd becatme
matters of prinuiple become involved; the revision of the fiseal relationa would,
of neeessity, call for the re-examination of the basic ternr of association. Thus
1
conaideration would alsd be given to such proposals of thie nature as the people
of herto Rico, in a plebiscite, may wieh to present to fhe Congresr,
*, -.
We must asqpme &Itat it ia a comnon endeavor that the framework of the relations
between the ~ o m r e e l t hof Prrerto Rico and the Federal Govsrmnent should always
be equitable and jttst; that they should always be based on the sound and fair
principle of government by consent. On the other hand, it would be iddle to anti-cipate
what those relations should be in the circumstances of an invisioned but yet
imprecise future, The problem is not to be solved by this generation. It is not
thie generation's reeponaibility. It is not this generation's authority and power
to determine abuut this problem. Therefore, Article IITOP merely points to it and
provides for its proper attention.
88 I stated at the beginning of my etatement, t
ecided perr~snently
might uall the
to the Congress,
modificatfone to
into 'Ithe hi
in set forth,
of its politioal s
either on th
. . ; .
JL final wordt- X have introduced this b i l l , as I eaid a t the beggining,
following. the adoption by the Legislative Aaaembly 4f Puerto Rico of a Joint
rT
Resolution calling for its introduction, The Joint Reaalation waa duly +proved
by the Governor of Puerto Rfco. In a represmntative democracy, the elected repre-eentativea
of the people mat, in matter of this import, epeak in behalf of the
people, in aoeordance with the peoples mandate. This is what we have done and
are trying to do, Proposalr thOch the people endorse at the polls become 8 maadat
on their eleoted representatives, ##r it walr on the s t r e w h of their pledge to
support such proposals that they were leafed.
flR-$lk3# represent*, therefore, a proposal made in the nsgie and aa the result
of a alear decision oi the people. The matter now rests with the Congresr of the
p-*LUnited State#. And i f there were any doubt as t o this b i l l representing the wiehes
63,
B i z o f the people and haring their approval, I rrm sure it won e completely dimpellt
&;%
' (5 >
9-j
.* upon its sabzuiasion to them, fn referendm,as provided in Seation 3 of the bill.
I feel aertain that at such referendum the people would approve these proposaB *-
as overwhelmingly as they approved Publia Law 600 of the 81st. Congress in the
ref ereIrdtlpl of 1951.

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Statement of ILsident Couuiesioner A. Fernds-~eern, to the Cormittee on Interior and Insular rlffairs, on H.U. 9234. Deceuber 6, 1959. Air. Chairman: I deeply appreciate this opportunity to discuss 1I.u. V234 which I introduced on September the 12th, 1969 to subrtitute fpr U.U. 5026 which in response to the adoption of Joiat it&eolufion No. 2 by the Legislative Amembly of the' Co~l~~wyealotfh Puerto itico, I had introduced on llarch 23, 1959. The purpose of that Sesolution aad therefore of H.2. 0234 i a to perfect and develop the fundamental concept which was adopted both by tbe - Conpees and the people of Puerto Bico concerning the political atatus of the people of Puerto Lice under Public Law 600, enacted by the 81st Congean and accepted by the people of Puerto itico. A little history may help na better underatand the background of Public Law 600 and of its fundauental concepts; therefore the reasone for H.11. 9234 which is intended to clarify and develop that conceiat. As a result of the Spanish rtaeyican i?ar, it war provided in the Treaty of Parie of 1899, that sovereignty over the ialand of Puerto IZico and certain other islands adjacent thereto, were oeded by the Crown of Spain to the United States. I\s it was later decided by the Suprene Court of the United States, this cession of eovereignty did not entail the incorporation of Puerto Rico into the United States; that Puerto Gico was appurtenant to, but not a part of the lhidsd States. Thus, a new political category of nunincorporated territoryn came into being in the United Statee political syetem. Under the treaty it devolved upon the Congress to determine what the political atatus of the pople of Puerto Rico would be. Fuerto Itico, as pwt of the Spanish monarchy, was referred to in the Spanish Constitution as an overseas proviuce, to be governed under special laws. At the time of the cersion aud under the term of a lbyal Decree of IJovember 25, 1897, Puerto 3ico wae organized as a eelf governing comaunity with a parliamentary syetem of government of its own. This status was comparable to that of the Brifioh dopinions in flroee days, albeit in the case of ,?uerto Elico repreeeotation in the Spanish Parliament, which it had enjoyed since .1069~wae nsfafained rince the Slpanieh 2arliaaent would legislate for ?uerto iiico on certain wattere of a national charactor. A l l other matters were eubject to the authority of the W r t o :tican Parliament. With the separation of ~Xe r f ofl ico fron tlie reef of the Spanieh Uonarchy and with the military occupation of ?uerto Itico by the United States froopa, the cabinef form of government wae continued for a diort per*iod of time; then it underwent mdif icationsl .nd finally was abolished) by successive milit- orders. In 1900 the Coryresa adopted an Organic lict for Puerto PGico and military goverment ceseed. It is a nofter of Matory that the Pqerto iscan people ae a whole were very much disillusioned with the Organic Act of 1900. Also t h a t a f t e r eeventeen yeare of agitatiou, a rovioed Organic act was adopted by the Congress. The new Orgazic Act allowed for greater participation of the people in their own governuent; at the ewe tine the citizen8 of Puerto leico were declared to be citisene of the United States. Two scbools of thought had developed mantine in h e r t o :tico. One, pointing to the fact that all territories of the United State8 traditiorially had ultinately becorje nsuber states of the Union, held to the doctrine that Puerto Ilioo should ultinately becoue a aeuber atate of the Union. The other, -3- pointing to the fact that Puerto Itico was not a rerrqtory in the sane sense than f o m r Territories of the United States for wader the treaty it had nat been incorporated into the United State0 and that a l l other fortner Spanish colonies in the New Ylorld upon their reparaticrn frw Spain, had become independent nationrs, held that Puerto Rice u l f h f a l y should become a republic aa such former colonfeu had become. The Organic Act of 1900 had not -rely crsated a rfruchwe of civil government for the people of Puerto l%ico. It had orest4 a framework of economic relations between the United Statee and Puerfo Uco, which profoundly affected e e r t o Eklcola economic &if e, h e r t o Rico 'e eoonw which had always been nosf ly agricultural, had asntinued ao to be, and had nopp becone dependent mainly on sugar cane, Cane mugar ntiaufrotured in herti0 Uao now entered the United States free of tariff bsrrierr. The brganio Act of 1900 bad prodded Ohat the same rates of fariff applied on f a r e i p goods in the United States were to be applied in Puerto a o o and dhat there would be no c u s t o~sd uties imposed ou plerahsadise shfpped fron the United Statea t o Fuerto ilico or fron P.u.. erto 1Uco t o the United States. The Island's area is only 3,600 riqwe d l e a of land surrounded by the sea. Land does not increaea, but the paplation of h e r t o Itico rapidly increased. Therefore, after the f i r a t surge in agricultural activities had spent itself, and atagar had reached a certain level of expaneion, the opportunities of employment did not increaee at fha same rafe of population increase. t'iith the labor force increasing inexotably, the result was ever growing unemployment, As the years elapsed, if becane clearer and clearer how preseing the economic and eocial problms of,Puerto Uico grew and how f he continuous debate on independence versus statehood, wm leee and lees related to realities. Independence, sctparafion, would nean to overturn and.upeet and destroy an econorgt that had now developed within the new relationships, Statehood would man the asewmption of overwheldng obligations of a fiscal nature, way beyond the capacity of the people. Still the people of Puerto ItUco contiwed to feel that representative governneut, govornueut by conoent , gwernmant of the pople, by the people and for the people, was as much their birthright aa that of any other people in the world. Thus, there developed a profound sense of frustration in Puerto Ptico. There was widespread diesatisfaution, both for political and for economic reaeoaa. Thirty more years elapsed during which Ynerto U c o > continued to agitate itself in endless debate. The year 1040 broqght about a great change in Puerto Rico. The people took now a new apwoach to their problem. They decided to use the legislative powers they had under the Organic Act of 1017 to zuarlc a new course for theneelvee. In the election6 of 1940 the majority of the people in Puerto Ilico suecribed to the proposition that the old queetion of our political status should be temporllsily set aside mid that they ehould embark in a program of ecouonic developent. Thua was a new Poerto Uico born. What hae happened in these nearly twenty years is a ~atfer of record. Iiowevor, although in 1940 the atatue question was set aside, it was obvious that the question could not be indefinitely po~tponed3,P~ forn o other reason, because political and economic quoationer of governaent cannot be colilpletely reperafed aad divoroed. 80, in 1 W the Legislative Assembly of Puerto ;%co ruranioaoualy decfdad that fho tine had arrived now when the political question should be explored anew. Unaniuouely, the Puerto ilican Legislative doaettbly decided to propaaa to tbe Congreas that the people of Buerfo Itico be consulted as to whether their politioal status ehould be -5- statehood, independence or dominion etatue. B i l l s were introduced in the Congress t o that effect. IIowever, thoy wera not acted upon. By 1948, after the realignment of political forces which had started in 1940, there existed in Puerfo iiico three political partiee;the Popular Democratic Party, the Statehood 13arty, which since 1953 c a l l ~ i t s e l f the Statehood RRpublioan Party, and the Indepeadance P8rfy. Tho Indey pendence Party went to the polla that year with independence as i t s main plank; the Seatehood Party wopt to the polls with statohood ae its main plank; the Popular Democratio propoaed to the people a program calling for the vigorous continuation of i t a euononic and social developent program, and as to the political stat= question, it propored to the people that Puerto lkico should reek self groveroasent on tho basilr of a political .constitution of its om, adopted by the people themselves, within a framework of economic and polificsl relationshipa, between the body politic so created and the United Stater, to be established on the basis of a compact, Thie would allow for the continuation of the basic econonic relationships which had obtained since 1900 to which the economy of %orto Ilico had already adapted itaelf. The people voted for the Popular Denocratic program worwhelmingly, I had tho honor of being elected on tho basis of that program as the bsident Comisaioner of Puerto IEico. The duty devolved upon me therofore to introduce in Congrees a b i l l which would embody the propoeals the people had voted for. I introduced the b i l l during the 816% Congrees, in its second eeeaion in 1950, PI coupanion b i l l was introduced in the Senate by Senatore O*&fahoneya nd Bufler, of Nebraska. The bill becaue a law on the 3rd of July, 1960. It ie now popularly referred to in Yuorto Mco ae Public Law 600. Public Law 600 WCUI enaoted, as if is atiated ia its own text, "fully recogni~ing the prinoiplo of govermwnt by oonsentw and "in tho nature of a cor~yacf~, Its ]purpose wes "that the people of h e r t o Zico my organize a govarmen* pursuant to r cloaetitution of their wn adoflion", It waa to become effective upon its mceptme by Puerto ZLioo in a reforendun. Ahxi it was ao aceeptod by the people, It was prmided in Public tcur 600, 818% Corrgress, that the consti-tution oP h e r t o &ico be drafted by a constitutional conveption whose nenbers would be elected by the people of Paerdo SCico; that it be adopted by the 4 4 people i n referendoas,;it be t r a n d t t e d by the Freridoaat to the Congress for ultiwatc approval. Upon its approval by the Congress the Constitution would become effective in accordance w i t h i4ie bmm, The Conetitutian of the Commma;alfb of Puerto Uco was so drafted, adopted and approved, and beom effectLv8 0x1 %ha 25th of July, 1952, when the Comznvealth of Puerto Moo was proolaimed. W e r tbe terms of Public Law 600, at euoh time as the Constitution of Suerto Rico becane effective, a nulniber of sarctiom of the Organic kt of i-erto IZico stood repealad, while tho remaining eectiona of the Organic Act were continued as tho l?wrto 2iioan Pedosal Relations &t, in order to establish the r e l a t iouship betmen the C ~ i w e a l t han d the Federal Government. An examination of the Pue~ltb %cmi Fedoral *%lations Act w i l l by itself explain w& euch sectiona o i fhe old Organic Act were so continued. They define the gsograpbio limits of Puerto .liao. They guarantee certain rights to the United 3tateb aAtisene in Ynerfo .%DO, They determine the fiscal aud econamia relatiowhips of Puerto Diao with the United States. They declare tho oitizonr of h e r t o Uico to be citieeno of the United States. They rcier 30 the control and ure of the public domain and the waters of Puerto ltico; to the extent to which Federal law applies in Puerto Ace; t o the position of the Resident Conmisrriongr; to the scope of legislative authority vested in the Co~rmamealth; to the Wnited States District Court in Puerto iiico, e t a. et c. Therefore, those sections of the old Organic Act which were naintainod in operation as the merto Rican Federal Relations kct determine the funda-mental political, fiscal and social relationships between Puorto Plico and the United States. Seven yeare have elapeod. Experienco has accumulaf'ed and it is on 9 the basis of that experience that H.B. 9234 now proposes that the Zkcrto Bican Federal Ilelatione Act be revised, in fact, reenacted; that it be clarified, modified and codified. This is what E.R. 9234 intends to do. In-analping the b i l l , I shall start by pointing to the f a c t t h a t it consist~r of only three eoctions: Seation 1 provides for tho adoption of the Articles of hrnauent Associ~tion, t o eubetitute in the compact for the present Puerto Rican Federal Relatione Act; Section 2 provides for thb consequent repeal of the h e r t o Mean Federal iklations Act; Section 3 providaa for the procedure of adoption of the Articlee of Pernanent Association, in the saw manner that the Puerto Rican FederalBelatioas Act waa adopted acr s part of Public Law 600, that is to say, both by enactment of Congreae and approval of the people of h e r t o 2ico. discussion shall actually center on Section 1 of thics b i l l , which spells the Articlas of Permanent Aseoaiation. The f i r s t matter I shall refer to is aa to why we should call these articles, Articlee of Pema)3ent AiBaoaiation, instead of naintsining the old name of Puerto iticaa Federal Belations Act. Articles of Permanent Aseocfation not only is =re deecri~tive, but it conveys the concept of the permanency of the association of Puerto itico to the United States. The provisions contained in theae Articles may be modified as time goes by; wen the nature of the associatkon may change, but it is the purpose and intent that the fact of assmiation of Pusrfo aico to the United States 'be permanent; that the aasociafioa of Pnorto iUco to the United Stateb is not to be deemed tenprarg; that ultimate separation is not 1 In considering the aiztmn &ticlee oi Perauurent Aesoaiation, that is, Sectjon 1 of the bill, I widlh to call the attention of the Conunittee to the fact that there is a parallelism in the order of those articles ae compaqd with the oHer in which the aeatiom of fhe Federal Ilelations Act appear. That is to aay, Article I corresponds to Seation 1, Article 11 correspond8 to Section 2, mad eo forth. The eectione of the Podera1 Belafiona Act m e twenty one, but becaaso the Organic Act waa made of fifty eight articles and unny of then were repealed, there are many -cant eectionrs in the Federal ~hlations Act. &numeration is theref ore oalled for. Therefore, beaideti d i n g clarif i-cations and mdifioations, the present bill renumeratcs and codifiea the present provisions. I ahat1 refer now to Article I, which substitutsa fox Section 1 of the Puerto Iticaa Fadoral Relations kt. Articlo I describes the geographical linita of Puerto' Bico ae doe8 Soction 1. Intorcstingly enough the use of fho word "belongingw in Section 1 of the Rtderal Relations Act hae been conitrued by sone not aa what it is, n geographical doaoription, but as intended to define the political statue of Puerto Rico, to declare Puorfo Rico to be a mere poasearion and therefore to negt~fe tho signifioance of the Cop13onwoalth. Although thore ir no merit t o such noneenso, in re-drafting Article I, new language is wed not subject to suoh construction. Paragraph (a) of Article 11 in H.B. 9234 oorresponds to Section 2 of the Federal Palations Act. Here we find technical amndpente, I beg that the explanation of theee ahmges be left to the Secretary of Just ice, Mr. Cancio. In addition, paragraph (b) include6 reference to full faith and credit to be given in the Comuomroalth of herto Mco to the public acts, records and j'lidicial proceedbqp of the several States of the Union, the District of Columbia sad the ~ e r r i t o k e sa nd Posseeeions of tho United States and 'viceversa, refleatinp ]provisions of the Consfifution of the United State$&paryrapb (o) mfers to extradition. Both the provfsione of (b) and (c) are a matter of law now, but because of the funaaPrenfa1 importance of there prwiaione, it has been deemed proper that &hey appear in %hie funbmmfal Bypo of legislation. Again legal counsel may furthw dwell on their sigdfiomce. Arfiale I11 of H.%. 9834 generally oorreepaads to section 3 of the Puerto Bican Federal Relations Aof. However, o$anses are made, both as t o the sequenoe in which the provisions appear and ae to the substance of the provieions. The provision on tho public indebtedness i n not included, it being tho purpose that the publia indebtednoes of the Commormealth be limited by i t s Conetitution instead. I wiuh to-call attention to the fact that under Section 2 of the bS11, it is provided that uutil the Comaonwealth of Pnerto 2ico by amencb~nts of its Constifut ion shall adopt limitations upon its debt incurring eapncity, muah debt shall not exceed the linitationls now set forth in Secfion 3 of the Puerto aicen Federal Xblatione Act. under paragraph (d) of Artic'le I11 new language h e hen addod so as to establish exehlption by the Comaonwealth of Puarto llico of a l l obligation8 issued by the United States or its authority or by any State, Territory or Porrseesion, ar now provided in revereed order, This reciprocity ie now granted by Puerto Uican law, but it b been considered proper that it be made a p t of them fundamental provisions, Paragraphs (d), (e), (f) and (g) are not a l l to be found in Section 3 of the Puerto Ucan Federal Aelations Act, I ehall preeently point to the reasons for their imartion here. The provision to be found under paragraph (d) reproduces provisions of the 1900 Organic Act which were continued under Section 58 of the 1917 Organic Act; also a related provision to be f o d in Section 9 of the Federal Halations Act, An important Prodifioatioa is made, At proeat, articlos of nerchan-dise 'of Paerfo Bican maaafaetare coming into the United Statee for consumption o r sale, enter the mainland market subjeot to a tar burden equal t o t h ~ otf like articloe produced in the mainland by virfuo of the levying aud collacting of a tax equal to tha* iaposed under the internal revonuo laws on like articles of United Statee domestic nanufscfure. Thia means rum and cigars under United Gtatea Treasury interprofation. The proceada are covered into the Treasury of the Counonrrealth of h e r t o Ilioo. Under paragraph (d) the Conmronwealth would instead collect itself a fax not highor than that collecfed under Conmomrealth law on the same produqte when consumed in Puerto Etico, This tax ieXarer than that collected on tho like articles in the mainland under the United Sfstes intarnal rweuue code. But an additional tar muld than be collected by the United States Treaeury on such articlee, equal t o the difference between the amount of tax paid in Puerto Bico before ehipent and the a~ount of tax collected ia the uainland on the like articles of lai inland mnufacture and this additional tax would bc covered into tho United States Treasury. To illustrate: run produced in herto aico and consmod in Puerto Uco is subject to a Puerto Rico tax of $6.00 per gallon, which is covered into the Treasury of herto Itico. Run produced in Puerto Itico for transportation and sale in the rminlnnd, is subject to a Federal tax of $10.50 (equal to that lovied on whiskey in tho nainland) and the proceed8 are also covered into the Treasury of Puerto nice, Vith the, adoption of Article 111, (d) Puerto Xco would collect on the run 1 shipped frou Puerto ILico to the nainland $6.00 per gallon or less, while an additional $4.50 or mre would be collected by and covered into t a United States Treasury. The language allows the Comomre~lth of Puerto iGco to collect a lower tax on shipped to the minland thrzn on ntn consmed in herto Itico, in which caee the Federal tax would autormtically and correspondingly increase. Thus the auount covered info tho United States Treasury nay be rmde gradually higher. I nf%y say now, I&. Chairam, that we in Puerto iiico believe that we should not be eo proud as not to accept help when in need, but that with cz sense of responsibility, aud of self rospct, when the the arrives that we c q aseurm greater reeponsibilities by ourselves, we ehoulO assme then-even if we m y have to tighten our belts an inch or so. So, with this proposal we intend to give up part of fhe run tax we are now getting. The Secretary of Zhe Treasury nay give us the fignree as to which it neans to our Treasury. I will cone bnek to this philosophy again a little later, whon we cone to isticle VI. Paragraph (e) of Articlo 111 r~erely reproducee the preaent proviaioi~s of tho Federal income tax laws as thev now apply concernine Fuerto Rico. * According d4h the established principle, the tax laws of the United States do not apply in PUerto :tic0 upon incone of residents of Puerto :tic0 derived iron sources within Puerto Ilico, but when it comes to incones derived by residents of berto Itico from sources outaide of Puorto Uco be it the -,.@A+ mainland or a foreign country, the Pederal income tax be paid on that outside income. Paragraph (d) has been inaerted to make sure that the taxes incident to eocial*security laws of the United Statesr may be made applicable to Puerto Bico without conilict with %he general principle that Federal tax laws do not apply in Puerto Blico. As you know, eocial security lawe except unemploymenf inaurame, now apply in Puerto Bico and the accompanying taxes are therefore collcctod. There ir a bill pending in Congress for the inclusion of Paerto Wco in the Fadera1 rraenplopcmt insurance systeu. Paragraph (g) reproduces the provision now to be found in Section 9 of the Federal Relatfans Act to the effect that the internal revenue laws of the United State8 ehall not ap2ly in Puerto lUco, with the above exceptions. The other paragraphs reenact extant provioions of law. Section 4 of the Federal Itelortione Act of Puerto 3ico was one of Qhose repealed by Public Law 600. Advantage has been taken of this vacant section of the Federal Relations Act to insert, in the intereet of logical sequence, proviaiona that have been in effect since their adoption as part of the Orgmic Act of 1900, and that were oontinued, ae before eaid, by Section 68 of the Federal iJ&lationa bt. Article IV therefore provides that all nerchandiso and article8 coning into the United States from Puerto 300 and coning to Puerto nico from the United States shall ba entered at the several ports of entry frae of duty. For purpoaea of clarification, langu-o has been added to tho effect that besides freodon from euston duties, the interchange of mcrchandlse between Puerto Bico crnd the mainlculd shall be carried out, not only f ree of custom duties, but of quantitative r e ~ ~ t r i c t i o nosth ei-than those heretofore imposed and now applicable, or that would be applicable in interstate trade, 'Implicit special reference is thus nade to the present - provisions of the Sugar Act, which reetriote the mount of refinod sugar which h e r t o f ~ i c ow, ithin it. overall eugar quota, may ahip to the United Statea. In passing, lef ne say that thie reefriction on refined sugar means a &eat loas to our econouy. The figures I ham been furnished go beyond #20,000,000 a year. The paragraph which begins in line 12, pgCe 7, refera to foreign products inported into Puerto Itico riiubject to a lower duty than like products irzported into the United Statee. The xeaeon for fhie provision is to be found in paragraph (b). Paragraph (b) provides, as is the law at preeent, that a l l articlerr hported into Fuerto Rico from porte other than thorn of the United States, shall be the sane as those required by law to be collected upon articles inported into the United States from foreign countries. Ae to this there is no change. Hcnvever, it i s prwided that auch r.ates nay be nodifiod, as Congress may provide, at the request of the Comonwonlth of Puerto Riuo. Thus Article Nwould leave room for Congress to naks a t the request of h e r t o Ilico other exceptione than coffee in the uniform application of t a r i f f rate8 in Puerto ilico a8 coqwod with the United States. The provision on coffee has allowed for the protection of coffee producera in Puerto Rico. The proposed provision my allow for the relief of the consumere in Puorto aico or nay help in our iudustrializlttion efforts, The matter is left to the ultiElate decision of Congroso. The purpoee is to allow flexibility to adjust the tariffs aa applied in Puerto Rico to the special needs in Puerto 3ico without prejudice to the fundamental principles of free trade between mainland and Puerto iZico and due reciprocal protection to the merchandise going fron an area into the other area. The provieion concerning coffee to be found in (b) is just a reproductiolr of the present provision of law abwe referred to. Paragraphs (c) and (d) substantially reproduce present provisions, to be found in the 1900 Organic Act, wffh a chenge in procedure. At present, the proceede of the collections in custom on Puorto Bico, are not, as the 1900 law provides, actually paid into the Treasury of Pqerto Rico but are covered into a special fund; adniniatrative expensea are paid out of this fund and the remaining m m t is then covered into tho Treasury of herto Rico. Under the proposed procedure collections would be paid into the Cormonwealth fund as they are collocted while the United States Trsaeury Department would have at its disposal fron the very bogining of the year, the full mount estimated by the Secretary of the Treaeury of the United States to be necessary to defray all the administrative expenses during that year. Paragraph (f) authoriees the Preeidenf under applicable Federal law, to negotiate trade and comercia1 agreenents with special provisions for Puerto Rico. Since flexibility is contenplated in the application of tariff rates in Puerto Riuo, them provisions concerning reciprocal agreenente are n logical consequence, so t h ~ tde creases in the rates Esade for Puerto aico nay be also conpensated by reciprocal conceaeions made on behalf of Puerto Rico, -15- Section 5 of the herto Bicm Federal ltelation~ Act beconeeArticle V. Technical uodifications and correctione are made whose explanation I leave to the Secretary of Justiae, Section 6 of the Federal Ilelations Act at present conteains language which has become obsolete and anneaessary, since the creation of the Cormon-wealth. It is obvious that the Cornonwealth met take cae of ite own expenses, and the Federal Governnont pays the expenses it incurrs in Puorto Gico. flowever, following tho same philosophy underlining the changes previously discussed relative to the tar on articles shipped fron herto rbico to the,United Statee, language has been inserted providing that the Comomealth may reimburse the Federal Governnent of expensee incurred in Puerto Ilico in the conduct of office8 rrud agenciee. As the economy of Puerto Bico deyolopa, it i s proper that Puerto Bico may gradually assme the burden of such expenses, I nay say thst s precedent has already been established. The expenees of the Alcohol and Tobacco Tax Unit of the Trcasury Departnent operating in Puerto Rico are now deducted fron the funds collected ae taxes paid on run shipped to the United Statea1 w ith the express consent of Pucrto Bico. !his precedent nay be progreeeively followed. Article VI further provides $heat the Government of the United States w.y, under such conditione ae m y be prescribed by law of the Congress, delegate or transfer Federal funcfione ox servicee to the Goverrurent of the Comonwealth. Tfrere are already precedents for this, For rany years the State Department has delegated to the Govement of llxerto 2ico the iseuing of passports, a very convenient arrangersent for the inhabitants of Puerto itico; again, the Harrison Act, which regulates the selling and prescribing of narcotic8 has always been enforced by %he Secretary of the Treasury of Puerto Rico, The Cona;lomealth paya all expensee of enforcenent while violstiona of law are, of course, taken before the United States District Court, -16- a Section 7 of the Organic ~bat i 1937 placed the public doahin of Puerto %ao mder the control of the Ga~ermat of h e r t o iiico, to be odulniste~ed for the benefit of idze people of Pun,~fo rtieo, Paragraph (a) of &Qiale VII ' I r r i ~ atU a =+it er into groper psr~pecSf ve since the creation af the Comonweal%h, Paragraph (t ) of htl%Scle VIX ha8 no ceulaferpart in Sect ion 7 of the Federal &la.l;iane Act, Lrr this c&naoc$ioa if rur;y be rendered *hat the eiaa of Wl.ts Riao S.e mly* 5 , W aquare uilse, wbixta tb poplation is now about 2,800,000; he10 ow 3-d DO$ arable; land fberefore, is very t " o.aluab$a isr Fuwto I$ioo, 3Cd glow wi+i&out saying that *here cran be no question %bat whatavor land is a$edad in Puedo ~Xcto fox the paulpose~ of the Federal in nattqr of defense. Wlf it ahmda &o rsaaaa %hat vbile a l l lmd that m y be neceesesy for $ha uee of %ha Federal a0mmmf atrould be raadc mailable, any land hold brytbxs &&era&G ovesrrnasrt mhiab ~ a m dso be neocsaary for federal use snd whSic& msy be d i r r w~ith~ by Ofre Federal Governnent,~hould, in the in'bersnt of &he ecomny, b~ put $0 use by Gher C o m o ~ ~ a l ot rb private individntr&@a s the caw uay Be. In order t o nalt8 B defternination as Co f i e present @$-tion arrd what raa~r be dme either by the Congreats ox the Preaihwb $a Anfeeet of Ohe bosf. ago of w h pmpelfPI prvsgrgpb (c) povides for a report to be rendered to %he Preeident and t;o the Conpee8 RS to present faderal holdings. Sectiaa 8 of tho Federal Relatione &ti refere to harbor weas and navigable sfr.xms., Article VXEX of 8.B. 923.4 reenaote Section 8 with clnrifying changes in vim of me crejrfion of the Cf.ouyonwoalth, Saction 9 of thc Federal &latione Act prwidea that the statutory lawst, af 4he United Statca shall have tho sana force and effect in Puerto Bico as in tho United Statee, with tliree exceptions~ (1) laws which are locally inapplicable, (2) where the Federal Ptlat ione Act itself provides otherwise, and (3) the United States intarnal revenua lawe. Article M of tho bill under considerat ion stat ee the erne ,pincii>les in uore precise language. It nakee clear that the federal government has and m y exerciee the sar-le power in Puerto ILico as in any Stato of the Union except for the special provision on fisc~l mtters; that with that exception the statutory laws of the United States have full force and effeot in herto ilico to the saue oxtent thh in any State. It ie enphasieed that for such laws to apply in Puerto itico there is no neceeaity of specific conaent by Pucrto Itico. It is also clarified however, thet were the Congreee to exercise other powers of legislation, fhe laws eo onacfod would have force and effect if consented to by the Cormonwealth of Puerto Itico. Paragraph (b) of Lrticle M mkee further clarifications concerning lawe alroady enacted. It is expreesly etnted that such lms will continue to have force and effect in Puerto Mco equally as if Puarto Bico Irere n aeuber State of the Federal Union, oxccrept, of' couree, inaofnr ae they m y be in conflict with the Articles of Asnociation theneolvee. AEI to prospective law, (c) requires oxpreas rlention of Puelrto ,%co for their application fhe?:oin, A similar provision to that is to be found in the Gum Organic Act. Thia practice will avoid uncortaintiea na to the or non application in Puerto Bico -. Section 10 is reenacted lowing out, however, obaolete language; it becoma Article X. It refers to the oath to be tRkon by public . officinle. -18- Section 11 of the Federal Relations Act ie obeoletc md therefore repealed. Since the proclitovrtion of the Cor~onwealth no reports are required by law to be nade by the Qovernor or heade of depnrtnents to officials of the Federal governnent. I ehall pauae here to point out that the eectiona of the old Organic Act fron and including Section 12 through Section 35 were repealed upon the Constitutioq of Puerto Ilico beconing effective. 80, the next section in the Federal Gelatione Act to be considered is Section 38, which becones Article XI in the present b i l l , Section 36 in the Federal llelatious Act and Article XI in the new b i l l refer to tho Ibrilidont Comieaioner. The language has been redrafted and four changes a r e nade. (1) The t i t l e of the nbs ident Colmies i~neri~s~ shortened to that of juet "Cormieeionern. (2) Since under preaont law recognition is to be given to the Cor;luiesioner by a l l departrtents of the United States Governneat, but hie position in the Houee of Llepreeentativee is determined by a rule of the House, it hae seenod proper that the rule be made a part of these Articles. (3) The Reeidonf Corauissioner ie now required t o pretaent hie c o r t i f i c ~ t eo f election t o the United Statee State Department. This is an obaoloto procedure. It is proposed instead that the election of the Resident Codseionor be certified by the Governor of Puerto EEico to the President of the United States and to the presiding officers of the Bouae of ibpreacntatives of the Congress of the United States. (4) In the caae of vacancy, the Federal Belatione d l c t now provides that the Codeeioner be appointed by tho Governor with the advice and consent of the Sonafe of the Colplonwealth. Paragraph (d) provides that the vacancy be f i l l e d as datemined by the Constitution or lawe of the Commonwealth, This would pernit special electione fo fill vacancies, instead of filling then only by appoinbent, Section 37 in the Federal llelationa Act boconee Article XI1 in the bill before UB, The present language of Section 37 is rather obeolate, The new language is precise and alear. It uay be seen that while Article IX defines federal powers, Article XI1 defines Comonwealth powers. A perfect balance is fhua eatabliahed. Section 38 in the Meral Belatione Act refers to the Interstate Corserce,Act, This povision is considered obsoloto and unnecessary. The next eectione of the Puorto Ricm Federal Eelations Act, Sections 41, 42, 44 and 43 refer to judicial mtters. They are all condensed into two art iclea; Article IPLIX arrd Article XlV. In Article XXIL an inuwation is proposed in the interest of justice. It is provided that the preeiding Judge nay, with the coxmen* of the parties, authorise trials or proceedin,e to bo condacted in the Spanish language, There ie a large percentage of people in Puerto ~ X c owh o aaster the English language, but there ie a'large percentage who do not, This ueans that nany people m y not act ae jurors at all becauee of their inability to speak the English language. It also meana that in the ceee of a defendant who does not aaater the Eqlish language, the prooeedirys, while conducted in the Engliah language, require continuous tranelation by a court interpreter, a tedioue and tine consuming process. The nmber of lawyers who nay appear '*\ before the ~ o & t tonds to be linited to thooe with full coruaad of the English language, In spitc of the on the spot tranelation, as perfect as it m y be, it is eaey to underatand how there nay be a language barrier between defendants and jury, Howevor,the provision ie optional, at the diecretion of the judge if alp.eeneht between the parties, The purpose then ie to bring justice closer to all the people, Article XW provides for tho revision of final judapents or decrees of the highest court ~f the Cormonwealth of Puerto 1Lica)in which a decision could be had/by the Suprerae Court of the United States in like nanner as with reference to the decieiona of the highest courts of the several States. This would equa%t)?e Cornonwealth of Puerto Eico in this respect with the States of the Union. Article XV of the new bill takes care of a situation which has \ developed since the inception of the Cornonwealth, In a nunber of cases, laws which, in accordance with the l?edasal ;&elations Act, would not apply in Yuerto 3ico have blom tlade applicable by flze Congress with tile coneent of the Comnwealth, Swh was the ease with tho mended Harrison Act recently adopted, with the provisions concernkng industrial alcohol to be found in the United S.tatea Internal &venue Code and with provisions to levy sugar proceasing tax, Article XV would rake clear the validity of euch laws unqueetionable. Now we CMO to Article XVI+ In accordance with the philoeophy of the Coznronwealfh status, Puerto PUco.shal1 have a eZnilar position in the exercise of governmental powers as a State of the Union, and the Federal Governuent shall exercise in Puerto Rico eseentially the earie powers as in regard to a State, with two miin dif ierencos: (1) the apecial provision concerning fiscal mttors, (2) the fact that the citizena of Puerto Bico, although suhjsct to Fedwnl law aa if they were citizens of a State, do not participate in tho exerciee of federal powere through their participating in the election of the President, tho Vicepresident and the corresponding nenbers of both llousee of Congress. The provisions concerning fiscal uatters are predictlted on two fundmental considerations: (1) a 13after of principle: there should be no taxation without representation, (2) Ptterto Ilico cannot afford to assme the obligations of Federal taxation aa a State, However, the fact is that not only ie h e r t o Bico outside the fiold of federal taxation, bat it receivee the benefits of the operation of the Federal Goverment agencies in Puerto ~lico, in charge of illportant govornnental functions, whose exponeos are borne not by the taxpayers in Puerto il'co, but by the t a x p a p in the rulinlnnd. Following the saue philosophy as with \ Article 111, according to whi& Puerto Rico would be giving up sone revenues it now rdeivea, and with Artfcle VI, whereby the Comonwealth nay reinburse the Federal GovemuaKt for ife expenses in Puerto mco, it Ee envisioned that the tine nay cow Prhen the circumttmcee juetifying epwial fiscal and ccononic treatnent for Puctrto dice rjay have diaappered, This would leave only mttere of principle. h f i c l e XVI provides fiscal provisions of the conpact, under certain open to reyieion by the Congress, giving: due consider-ation to such proposals as the people of h e r t o liico nay nake. Since natters of an economic and fiecal nature ara alnost inextricably intertwined w i t 3 mtters of a p l i f i c a l nature a d because aattere of principle becc-ue involved, the reviaiw of the fiscal relations would, of neceesity, call for the re-oxmination of the basic terns of association, Thus consideratio would also be given to such propoeala of this nat ople of Puerto Bico, in a plebiscite, nay wish to proaent to e that it is a cotmon endeavor that the frauework of the relations en the Cumonwenlth of Puerto ,Uco and the Federal Goverment should always be equitable and just; that they should always be based on the sound and fair principle of goverment by consent. On the other hand, it would be idle to anticipate what thoso relatious should be in the circunstances of aa ew.ieioned but yet improcise future, The problem is not to be solved by this generation. It is not this generation's reewnsibilify. Tt i e not .bhie,generationlasu thority and power to Ceternine about this problon. Therefore, Article XVI. norely points to it and provides for its proper attention. atated at the beginning of my atatauent, the ltrticles of sociation now proposed are predicated on the aesunpfion that Puerto 'fiico hae decided pernanently t o live in association with the United States; that while the terns of aasoci~tion m y change, the fact of associ-ation will renain. Psticle XVI, I repeat, ie predicated on that assmption. Needless to say, at such the as the Legislative Asseubly of Puerto Rico dght call the people to a plebiscite to deternine wliat proposals were to be aade to the Congress, nothing would preclude tho Legislative keaotlbly of herto Ilico fron including anong the formllts aubnifted to the people, not only possible nodificr~tione to the teme of association itself, but other fomlas of political relationship than that of aseociation. This could include, of course, aduirasion into tho &ion; conceivably, but nost unlikely, it nigh* include even independence, By the sane token I should say that Article XVI is not intended to preclude the possibility that at any tine before the attninuent of the econonic level therein set forth, Puerfo ilico, under its own lawa, m y hold n plebiscite on the question of its political statua or any other natter it m y wish to subait to the referendm of the people. Finally, m y I point to tho fact tht Article XVI is not rvrndatory either on the b Congress or on the people of Pllerto Ilico. Article XVI therefore, represents the projection of a line of thought which begins with Article 111, which is developed in Article VI, and terninates in Article XVI, The three of them express the thought that while association has been adopted as the mat coavenient Elanner of ro1ationehip:between h e r t o Uico and the United States, the terns of association nay change with t h e , neefing the needs and >roblam of those tines and that problas which my arise in the future, w i l l find n norm1 way to be net and solved. , &. Chairman, I apologize to the Cotslittee for tho extent of qy. teetinony. The nature and inportance of the queetion I bring before you has d e it unavoidable, I boliovo that tho adoption of Che philosophy of association, and the conaecyucnt creation of the Contmnwealfh of Pu ;o Ilico, a vexing problen* which for nany years appeared t o be insoluble has been solved, within lj&s$ circamstances it had to be solved. I believe that credit belonge, therefore, to the Uuifed States and Puerto Rice. In adopting II.TL. 9234 we would be perfecting what we created fron 1950 to 1952. 51143 would bo Adopting ways aad ireans by which future problczs can be net in the sane eatisfnctory, peaceful, friendly, fzaternal rimer that the f i r s t stop in the solution of tho whole qucstion was taken in 1950. A final word: I have introduced this b i l l , as I said at the beginning, following the adoption by the Legislative f~s smblyo f Puerto Rico of a Joint Besolution calling for i f e introduction. Tho Joint Besolution was duly approved by the Governor of h e r t o Itico. In a representative douocracy, the elected ropreseutativee of the people mat, in nafteqof this hport, epak in behalf of the people, in accordmce - 2 4 with the peoples -date. This ia what we have done and are trying to do, Proposals which the people endorse a t the polls becoae a rumdate on their elected representatives, for it was on the etrengfh of their pledge to support such proposals that they were elected. La. 9234 represents, therefore, n propoeal made in the w e and as the result of a clew decision of the poplo, The m t t e r now rests with the Congress of the United States, And if there were any doubt as to this b i l l representing the wishes of the people and having their approval, I m sure it would be c o~p l e t e l yd ispelled upon its subniosion t o then, i n \ referendm, as provided in Section 3 of the bill. I feel certain that at auoh referendun the people would appove these proposals as overwhelaingly aa they approved Public Law 600 of the 81st Congress in the referendun of 1951, Y I I deeply appreoiafe fhir oppertuniw . .,!, ' *"$ + \:!j .-. r d: ""4 raIb-Bopse t o Ohe adoption of Joint Realution Ho, 2 by af the Cumwarealth of P,erto Rice, X had introdaeed en I' 0% Warto Biw ooamerning 8he politia.cl atatua of the pmplicr aS pus st^ . PtlbXia &w 660, enatrted bg the 81at Gosagreus and aecepad fhe p@e of > Pugrta Rim. h Zitfle history reey help arr bQdter underrtaod We baskpaad of wkiah: .ir inteaded to darify and develop thst sonsept. Atu a rereult af flnr Spaaiah herican fw, it war providail &n Bhe Treaty S s l W &jam% Weto, were creded tvJr *he Crown of S p b $0 fhs Waited States. & iC wrsb4as idaoided by Wle Suprem C O W of the United 8ta-b~. fhia creaeion of em~&iga&ttyE& ,Jliol e n b f l -hhe incorporation sf &.rto Bioo fnto tbe T3nih.d S t a t r ~' 4 *ict P e s ~ t 0w o o r r u a ppwc-t to. Int not a put of the Opit.( Btat... Thm, s +& polfficrtri crat?cigp* 95 'M~ i n a ~ ~ p ? 4 iBpet rerdif orpm rrm b t o being in the i' : 8il ~ k ~ t a t peo ~a ~ t i osayl a ~ r ,m er , the treaty it d e.m ~msp~a the onp pear ? Z 7 6 p st'" we what tha p l i t i t a l a t a t ~ ~6~heo ple ople a t P+to ltipo rnCU be. , , h l .Puertq l o o , & u put of Cb. I - I . / ..4r - I I I ~ ~S ~ ~ u t iua .ns o r n u eL gmwinoe. t. p r eme d mi^ mpeoial law*. A$ the tPmo Ithe ~emS.Oau ad WIC$bISf arm a of e Wya3 &@reeo f N o d e r a6, of if. ma. 'Wir &$.torr u ooptpsrrrble bo in bhaue 'm, albeit L the 4wpa of Rprto Bioo npraaab$ien in thr ' , * a s * - I' -2- Spanish Parliament, whiah it had enjoyed rince 1889 waa maintained since the Spanish ~ a r i i a a e n tw ould 1 egi s late for Puerto LUco on certain matters of a * llatioaal charaoter, $11 other mattera were subject to the authority of the Puerto Bicran Parliament. , . - With the separation of Puerto Rico from the rest of the Spanish Lfonarcv {and with the dlitaq o.cupation of P,erto Rico by the United Statee troop., the cabinet form of government raa continued for a e h ~ r pt eriod of t ime ; then it - underwent modif icatioas and finally war aboliehed by aucceoaive military orders, In 190d the Congress adopted an Organic Act for Puerto Rico and military government ceaaed. It is a &.bar of hietory that the Prrerto Rican people ae a whole were ve* mch disillusioned Srith the Organic kt of 1900. Also that after seventeren yews of agita eed O-ia Act waa adopted by the Congrecrs. Thisnew Orgaaic Act allowed participation of the people in their own governmant; at t h e same pime of P,erto Rico were decrlared ,t .o be cifiaens of the United St~terr. h. Two schoolo of thought had Qeveloped meantime in Suerfo Bico, One, pointiag to the faat that a l l territories of the United Statee traditionally had ultimately become neeiber states of the Union, held to the doatrine that Puerto Rico s h d d ultimately belrrome a member state of the mion. The other, pointing to the faot' that Puerto Ria0 waa not a Territory in the sqme eenee than former Territbriee . of the fTnited States for under the treaty it ha#ot been incorporated &to the United Statee; Ad that all former Spanish coloniea in the 'New World upon their separation from Spain, had become independent natione, held that Puerto Ricro ultimately . > ehould become a republic as such former coloniee had become.- The Organic A,ct of 1900 had not merely areated a structure of civil government for the people of Puedo Rico. It had created .a.f'rrunork of monomic relations between the United States and Puerto Rico, whi* profoundly affected Puerto Rioo ' r economic life. Puerto Rico4 a e&onoq which ha&' always been mostly agrioultural, had continued so to be, and t~ ad now beoome dependent, mainly on eugar c ane. Z Cane Gar pu1pt22acfnred in Pnerfo Rico now eatere4 the United States free of' tariff L r i e r a , The Organic Aci of 1900 had provided that the ram =@tea of tariff applied on foreign goods in the United States were t o be applied in Puerto Bico and that th6re would be no cuetoma .duties impollied on mrchmdiee rhipped from the United 8tatee to herto Rteo or from PUerto Rico 60 the United States. The Xslkii'a ie "ionly 3,600 square miles of land surrounded by $he sea. Land do;bs not inerea~e, bat the papilation of Puerto Rioo rapidly increusd, Therefore, after the f i r s t * eurge in agricultural activities had aped iteelf, and sear had reached a certiaii level of expaion, the opportunities of aaployment did not increeee at the rame rate ttfppulation increaae, Witb &h& labor forge increasing inexorably, the rerul t was ewr @ew%wr ulempl~~~senAt.a the yesre elapsed, it became clearer problems of P,erto Rico cant inuow* aebatt.4 ees related to Mw realities. - depead~nce, separation, would maau to gperfurn and upaet and dewtroy aa econoBpr at bad aolr devrrliopcd within the new relatirutahipa. Statehood would *an the assumption elring obligations of a f iecal &tire, ray beyond the capacity oi the people, S t i l l the people of P@o Bico continued to fesl that repre&n6btiw 9 . gmrru&nt, g o v e r m e ~ ~ . ~ , ~ ~ ~g~w,eor~mme~nte o~i$ t,4 e beople, by the people and for the people, .was arp mu& their birthright as that of other people in the world. Thus, there developed a profound sense of flllatrati on in Fuerf o ;&ice. There was widerepread " . dissatisiarotiorr, hots gar political snd for econoralc reamna, Thir6y more yeare h Puerto Bioo continued to agitate itself in endleea debate, I ,1440 brought abont a great change in b r t o Bico , 'Phe people took now o .tfieir problem. They decided to use the legislative @owekr they had 7 - , ' pder the Orprnio kt of 1917 to llrL a new oourse for themelres. In elletions -4s ." < *) sX. i -* . 1 - of 1940 the majority of the people in Puerto Rico euscribed to the ~ o p o s i t i o nth at the ntd question of our political status ehould be temporarily set aside and that they - 7,:;. -a Dsarocratic P&y, the Statehood Party, which sintre 1983 cti1.1 itself the' Statehood ' 1 Republican Party, and the f ntbpendence Party, The Indepe~mc eP arty went t o " . . L the polls that year with EBdependenae as its main plank; %he Ststehood Party weat to the polls with statehood ars its main plank; the bPopular Demooratic propied to the people a program calling tor the vigorous continuation of its e6onomic and social developaent p~agsam, and ae to the political atatus, qaestion, it propolred to the people that herto 8ico should seek self governmen% on the baais of a politioal o ~ t intvt ion of it. own , &opted 5 6 t h e popl e th&elvea, 6 * r . rithin a h r s n o r k of eoonomic aad pol i t ical relationo- b.i &- , b.t..m thd'&&y $--! ii$ 4 politic so created .nd the United Stetes, to be e.tabl$abiri on the basi..,of a , r , n : ~ . &, r CP 3 8 \ "3 > compact. This mtald allow for the oontinuation of thd ~ ~ o i o ' ~ c o n ogr@t cl* $ion- ,I I t, ' 2: --, * . ships whieh had obtained sinae 1900 to which the eoonoqy :oi herto Iticofij$z- -".J ,&,?,. . ':.,?Y$.C: - P ' , ~l r e adpa dapted i t s e l f . %e people voted for the ~ o @ @ ~ ~ o ~ ~ a t i c " r"f ?."%% *', -t .e.p'g into Obc Treasury of b r t o Wno,, Euih -poduced ia Puerto Bfco for taaneportation and rale in the mainland, ie aubject to a ~bderal tax of $10.50 (equal to that levied on whiakey fn the wainland) qnd $he proceeds are alsa covered into the >, Treasury of Puerto Bico. With the adopt"i o.n of Article ' I ~ I(,d ) , h e r t o Bico rnuld '* collect o. the rm .hipped from h e r t o Bico to the nainim@j8,(10 per gallon or - . ,,%. 3 - , ". * . P lees, while an additional $4.50 or mare would be colle"ctekr.,b$ and covered into the .*_" C'< .+', f* " , 1 z4,K ~ United State6 Treasury. The laupage allowe the Crtnhnonperr;lth of Puerto ' ~ i c o'to 7: " $4 ti> / , I collsot a lower tax on nu ehipped to ths 'kinland thw-0~ - conauad in ,Rerto ? i s $ ' I I y .(19 no+, ilr. Chai-, that we in PZ&O MCO believe *La% we . y* .hould not be eo proud u not to accept help when in4.nerd, but that +*h a ,,', * . 8 . c : P apm.0 of respneibility, and of aelf respect, fh.n fhe tinre arrives $&$t we 2 + r . . ' - can ass\laps greater reeporrofMI-Ef3lre by oureelma, we rhoad uasurne them, epeo , I . ,3 1 if we 4 hage to tighter). our belts an inoh or so. 86, with %hie propeal we intend to give up part of the rum tax we are now getting. The ~qqx'b3u-y 1 - . of the ~reaeclry nil1 iive (or hm @wnr u.) the f i r n e e aa to *ah .$k.nhanr , . " L 4 - t o our %!reluury. I rill come bauk to this philo~pehj a l i t t l e Iater, L when we come t o Artiale VI, , ". .0J ". + - - . I' Pwagraph (e) of Article 111 amrely reprad-ea the preaent npr "rY oriaion of the Federal incolrua tax lawe arr Ue$ PF rpply aonoerning Puertlr Bico. Atwording with the slat ablimhad pinoiple, &he tax lm of the United ~ f a t e e do not apply in h e r t o Bioo upon inoome of rerridenta *f Puerto Rice :derived from eoumea within Puuto moo, but when it aomea tr incorers derive& by reaia-te 't . 1 - 8 . of herto Biao from eourcee oa*eied of herto Moo, &'it the nainlmd or a '$.' '?. ! , "i A,ticler of Ai~eocia%ionth emelvea, f iole X, It refers .to 'the oath to be taken -by public officialm, :*, , , - 3 : - , , . . ~ , I -*:"' ,, !y ' f* .* 7 .J. , :, to the Resident Commissioner. The language hm been redrafted and four changes ere made, (1) !!!he Tiiile of the '&esident Conenisrionern is ehortened to that of 1 juet *CornmieeionerR. $%2j Since under present law reaopition is to be given to ~ # the Conarissiener by all departmente of the United States Government, but hie position in the House of representative^ is determined by u rule of the Rouee, it hae seemed proper that the rule be mrde a part of these Articles. (3) The Resident Comiseioner a is now required to present his certificate of electian to the United States state eolete procedure, It is proposed inatead that the eleatian pa. oner Weertified by the Oovernor of Pnerto Bico to the President of the United States end to the preeiding offieerr of he House of Rapresen-t a t i n n of the Congress of the United States, ( 6 ) In the ease of vacancy, the Federal Belatiom ht now provides that the Codsrioner be appointed by the Governor with the advioe and oonsent of the Senate of the Oommomrealth. Paragraph (d) provider that the vaaancy be fiZled as determined by the Conatitation or lawe of the Cormnon-wealth. This would peratit special electione tu f i l l vacaaciee, instead of filling only them/by ~ppointmtsif. Section 37 in the Federal Relations Act becomes Article XI1 in the bill before I S age of Section 37 is rather obsolete, The new language ooesa e, 't mag be seen that while Article IX defines federal powere, ~rticleX I1 defines Comuonrrealth powers. Section 38 in the Federal Relations h t refers to This provision' is considered obsolefe and unnecessary. The next sections of the Puerto Rita Federal %la 44 qnd 48 refer to judicial matters. They are all condena Article XI11 and Article XIV. In Article XI11 an innovation is proposed in the interest of justice, It ie provided that the presiding judge may, with the consent of the b;&iee, authori~e trials or proceedings to be conducted in the Spanish language. There is a larg.e percentage of people in Puerto Rico who laarter the English language, but there is a large percentage who do not. This means that many people. may not act as juror8 at all beceuae of their inhability to speak the $oglish language. It also mew that in the eaaa,'d ut~dafendaat who does not master the ie to bring justice closer to all the people. Article X N provides for the revision of final judgementr or decrees of the $ ' d-highest court of the Conamonwealth of Puerto Rioo in which a decision could be ha$ 86 by the Supreme Court of the United States in like manner as' decisions of the art- of the several states, This --) of Fuerto 1tico- P the Stater of the Union, $<a the inception of the Canrnonwealth. In a number of cwea, k' .4 , 4% with the Federal Relations Act, would not apply in herto -20- 10 , * ' 1 . I 1 This wkld leave only matters of principle ArticLe XVI provides therefore, that the fiacal proviaions of the compaalt, under certain conditions, shall be open to revisioh by th. .Congress, giving due consideration to mch proposal8 as the people of Puerto Rico may make. Since matters of an economio and f iecal nature are almost inextricably interwined w i t h matter8 of a politiual nature snd becatme matters of prinuiple become involved; the revision of the fiseal relationa would, of neeessity, call for the re-examination of the basic ternr of association. Thus 1 conaideration would alsd be given to such proposals of thie nature as the people of herto Rico, in a plebiscite, may wieh to present to fhe Congresr, *, -. We must asqpme &Itat it ia a comnon endeavor that the framework of the relations between the ~ o m r e e l t hof Prrerto Rico and the Federal Govsrmnent should always be equitable and jttst; that they should always be based on the sound and fair principle of government by consent. On the other hand, it would be iddle to anti-cipate what those relations should be in the circumstances of an invisioned but yet imprecise future, The problem is not to be solved by this generation. It is not thie generation's reeponaibility. It is not this generation's authority and power to determine abuut this problem. Therefore, Article IITOP merely points to it and provides for its proper attention. 88 I stated at the beginning of my etatement, t ecided perr~snently might uall the to the Congress, modificatfone to into 'Ithe hi in set forth, of its politioal s either on th . . ; . JL final wordt- X have introduced this b i l l , as I eaid a t the beggining, following. the adoption by the Legislative Aaaembly 4f Puerto Rico of a Joint rT Resolution calling for its introduction, The Joint Reaalation waa duly +proved by the Governor of Puerto Rfco. In a represmntative democracy, the elected repre-eentativea of the people mat, in matter of this import, epeak in behalf of the people, in aoeordance with the peoples mandate. This is what we have done and are trying to do, Proposalr thOch the people endorse at the polls become 8 maadat on their eleoted representatives, ##r it walr on the s t r e w h of their pledge to support such proposals that they were leafed. flR-$lk3# represent*, therefore, a proposal made in the nsgie and aa the result of a alear decision oi the people. The matter now rests with the Congresr of the p-*LUnited State#. And i f there were any doubt as t o this b i l l representing the wiehes 63, B i z o f the people and haring their approval, I rrm sure it won e completely dimpellt &;% ' (5 > 9-j .* upon its sabzuiasion to them, fn referendm,as provided in Seation 3 of the bill. I feel aertain that at such referendum the people would approve these proposaB *- as overwhelmingly as they approved Publia Law 600 of the 81st. Congress in the ref ereIrdtlpl of 1951.